The US economy remained sluggish early in the second quarter with high petrol prices hitting consumer spending and bad weather pushing pending home sales to a seven-month low in April.

Consumer spending increased 0.4 per cent for a tenth straight month of gains, the commerce department said, after rising 0.5 per cent in March. But prices rose 0.3 per cent, leaving spending up just 0.1 per cent and incomes stagnant when adjusted for inflation. Tornadoes and floods were blamed in part for an 11.6 per cent plunge in contracts to buy previously owned homes last month. - (Reuters)