Income Barely Rises: Up 0.2%

WASHINGTON —  Americans saw their incomes rise a scant 0.2% in March as they increased their spending at a lackluster pace as well, the government reported today.

The Commerce Department said personal consumption spending rose only 0.3% last month, providing new evidence that consumer demand is showing little signs of strength this year.

The 0.3% increase in spending followed a slightly better 0.4% rise in February and a steep 0.4% January decline.

The weak consumer spending has been blamed in part on slow income growth. The 0.2% rise in income last month was half the 0.4% February rate and the slowest pace since a 0.1% January increase.

Personal incomes were growing at an annual rate of just 5.3% in the first quarter this year, down from an increase of 6.9% in the final three months of 1985.

With income growth sluggish, the level of consumer debt at near-record highs and the savings rate low--4.2% of disposable income--Americans have little room to increase consumer spending.