Breaking News Bar
updated: 3/3/2014 7:58 AM

U.S. consumer spending up 0.4 percent in January

hello
Success - Article sent! close
  • Americans boosted spending in January despite the harsh winter weather but activity was much weaker in December than initially reported.

      Americans boosted spending in January despite the harsh winter weather but activity was much weaker in December than initially reported.
    associated press

 
Associated Press

WASHINGTON -- Americans boosted spending in January despite the harsh winter weather but activity was much weaker in December than initially reported.

The Commerce Department says that spending rose 0.4 percent in January following a tiny 0.1 percent gain in December which had initially been reported as a stronger 0.4 percent increase. Income grew 0.3 percent in January following no increase at all in December.

The spending gain was better than expected but it came after the sharp downward revision in December.

Consumer spending is closely watched because it drives 70 percent of economic activity. The government reported Friday that the overall economy grew at a 2.4 percent annual rate in the fourth quarter, down sharply from an initial estimate of 3.2 percent growth during the quarter.

Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.