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WORLD / America |
US consumer spending records weakest growth in 15 months(Xinhua)
Updated: 2008-02-01 08:41 WASHINGTON - US consumer spending nudged up just 0.2 percent in December, down from a one percent advance in November, the Commerce Department reported Thursday. The December gain in consumer spending, which accounts for two thirds of overall economic activity, was the weakest performance since September 2006. Personal income, the fuel for future spending, rose by 0.5 percent in December, the best showing since a similar increase in September. Americans' disposable personal income, or after-tax income, also rose by 0.5 percent, up from the 0.4 percent gain in November. The personal saving rate - personal saving as a percentage of disposable personal income - was 0.2 percent in December, compared with zero percent in the previous month. For all of last year, consumer spending increased by 5.5 percent and incomes rose by 6.2 percent. The report came as fears of a recession have grown. The big worry is the persisting housing slump and credit crunch could make consumers and businesses cut their spending and investment significantly. In the final three months of last year, the US economy, as measured by the gross domestic product, grew by just 0.6 percent at annual rate, down sharply from the 4.9 percent pace in the third quarter. |
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