Oh, and those new taxes haven't helped.
The retrenchment in spending indicates consumers may be starting to feel the impact of higher taxes. But a separate report Friday showed consumer confidence rose to a six-year high in May, suggesting the decline in spending may be temporary.
Americans are taking home less pay this year because of a 2 percentage point increase in Social Security taxes. A person earning $50,000 a year has about $1,000 less to spend this year. A household with two high-paid workers has up to $4,500 less.
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