Consumer Spending Slows in October

Washington, DC, November 30, 2007—Consumer spending slowed in October, and inflation offset slight gains in income, according to the Commerce Department.

Although job growth was strong, incomes rose 0.2% last month. But a 0.3% rise in prices meant after-tax incomes fell 0.1%.

Consumer spending increased 0.2% but was flat after adjusting for inflation. Spending overall was the weakest since March.

There were no spikes in inflationary factors. Personal consumption expenditures were up 0.3% for a second straight month.

Wages and salaries increased 0.1% before inflation, even though nonfarm payrolls grew 166,000.