Consumer spending tepid; savings at 2-year high

Washington

US CONSUMER spending barely rose in February as households boosted savings to their highest level in more than two years, the latest sign that the economy hit a soft patch in the first quarter.

Economic growth has been undercut by bad winter weather, a strong dollar, a now-settled labour dispute at busy West Coast ports and softer demand in Europe and Asia. The slowdown in activity, however, is expected to be temporary. "Even if the first quarter is weak, the outlook for consumption over the remainder of this year looks good," said Paul Ashworth, chief US economist at Capital Economics in Toronto.