April consumer spending smallest gain in 3 months (by Greg Robb)

WASHINGTON (MarketWatch) -- Consumer spending rose by the smallest gain in three months in April, a further sign of slower spending momentum due to higher prices at the pump. Consumer spending rose 0.4% in April, the Commerce Department estimated Friday. Income rose 0.4% in April. Income has risen for seven straight months. Both income and spending were revised lower in March. The report was mixed in terms of market expectations. Spending rose less than the 0.5% expected, while the gain in income matched forecasts of economists surveyed by MarketWatch. The core rate of inflation, as measured by the personal consumption expenditure index, rose 0,2% in April, in line with forecasts. On a year-on-year basis, the core rate is up 1.0% compared with a 0.9% rate in March.