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U.S. consumer spending fell sharp 0.5 percent in December | TribLIVE.com
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U.S. consumer spending fell sharp 0.5 percent in December

Associated Press
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Devyn Kirkpatrick looks over a discounted winter coat at a Columbia store as last-minute shoppers finish up their Christmas gift lists at the Outlet Malls in Castle Rock in Castle Rock, Colo. On Friday, March 1, 2019, the Commerce Department issues its December report on consumer spending, which accounts for roughly 70 percent of U.S. economic activity.

WASHINGTON — U.S. consumer spending tumbled 0.5 percent in December, the biggest decline in nine years. Meanwhile, incomes were rose sharply in December but edged down in January.

The Commerce Department says the fall in consumer spending followed sizable gains of 0.7 percent in October and 0.6 percent in November. December’s result means that spending for the quarter slowed significantly, a primary factor in the slowing of overall economy in the final three months of the year. Gross domestic product decelerated to a growth rate of 2.6 percent after a 3.4 percent gain in the third quarter.

Incomes jumped 1 percent in December, though slipped 0.1 percent in January. The government did not release spending data for January because of delays stemming from the government shutdown.

Categories: Business
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