HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Consumer spending up, inc...

Fri Mar 1, 2013, 10:04 AM

Consumer spending up, income posts largest drop in 20 years [View all]

Source: Reuters

U.S. consumer spending rose in January as Americans spent more on services, with savings providing a cushion after income recorded its biggest drop in 20 years.

The Commerce Department said on Friday consumer spending increased 0.2 percent in January after a revised 0.1 percent rise the prior month. Spending had previously been estimated to have increased 0.2 percent in December.


Income tumbled 3.6 percent, the largest drop since January 1993. Part of the decline was payback for a 2.6 percent surge in December as businesses, anxious about higher taxes, rushed to pay dividends and bonuses before the new year.

A portion of the drop in January also reflected the tax hikes. The income at the disposal of households after inflation and taxes plunged a 4.0 percent in January after advancing 2.7 percent in December.

Read more: http://www.reuters.com/article/2013/03/01/us-consumer-spending-idUSBRE9200K520130301

3 replies, 1623 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 3 replies Author Time Post
Reply Consumer spending up, income posts largest drop in 20 years [View all]
Redfairen Mar 2013 OP
question everything Mar 2013 #1
fasttense Mar 2013 #2
abbybaker Mar 2013 #3