Consumer spending in the U.S. increased more than expected in January as personal spending rose 0.5 percent according to the Consumer Department. Despite the increased spending, incomes remained mostly flat, recording a 0.1 percent rise compared to the predicted 0.4 percent increase.
This was the weakest performance for incomes in four months, causing economists to predict that future spending will also flatten-out or even decline slightly. This weak growth will likely further dampen the hopes for the economic recovery.
Source: Associated Press
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