Consumers Tighten Belts in December

Washington, DC, January 30, 2008–Consumers spent less in December than at any time in the past 15 months, the Commerce Department reported Thursday.

Spending was up just 0.2 percent in December, down significantly from a 1 percent gain in November. It was the weakest reading since spending fell by 0.1 percent in September 2006.

Inflation-adjusted spending did not increase in December, after a 0.4 percent rise in November and a 0.1 percent decline in October.

The report confirmed earlier reports by retailers that 2007 was the worst year for holiday spending in five years.

A report on consumer spending showed that personal incomes rose by 0.5 percent in December, the best showing since a similar increase in September.