29 April 2005, 17:56  U.S. consumer spending rose 0.6 percent in March

U.S. consumer spending rose 0.6 percent in March but inflation rate up most of the gain, while first-quarter worker compensation posted the smallest increase in six years, the government said on Friday. The Commerce Department's report on consumer spending showed inflation quickened in March, but the pickup was in line with expectations in financial markets. U.S. stock futures and prices for U.S. government bonds rose a bit after the data was released, while the value of the dollar was little changed. Economists said the data did little to change the outlook for interest rates. Federal Reserve officials gather on Tuesday and are widely expected to bump benchmark overnight rates up by a quarter-percentage point to 3 percent.

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