Consumer spending in the United States fell by 0.5 percent in December compared to a month earlier. That was what the US Department of Commerce announced.
Economists had a 0.3 percent reduction in average. In November, spending increased by a revised 0.6 percent. Earlier, it appeared that US retail sales had fallen sharply in December, indicating less strong spending by Americans.
The personal incomes of American consumers fell by 0.1 percent in December, after a 1 percent increase a month earlier.
The publication of the figure was delayed due to the shutdown of the American government. Consumer spending accounts for about 70 percent of the US economy.
An important inflation component in the spending figure, the so-called Core PCE, was 1.9 percent year-on-year, as in November. The Federal Reserve sees this key figure on inflation as its main indicator of price developments.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.