Personal spending rises slightly, lags income gains

March 02, 2010

NEW YORK - The Commerce Department said Monday that personal spending rose by 0.5 percent in January, slightly better than expected. But incomes edged up only 0.1 percent, which was lower than the 0.4 percent gain that economists had expected. The income gain was the weakest showing in four months, partly because millions of Social Security recipients did not get their usual cost-of-living boost. The weak income growth could depress spending in the months ahead, acting as a further drag on the fragile economic recovery. Consumer spending is closely watched because it accounts for 70 percent of total economic activity.

- Associated Press

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.