US consumer spending falls for sixth straight monthFebruary 3rd, 2009 - 4:18 am ICT by IANS
Washington, Feb 3 (DPA) US consumer spending dropped one percent in December, a record sixth straight monthly decline and rounding out the country’s worst year for consumers since 1961, the commerce department said Monday.The drop from a month at an annual rate was larger than economists had predicted, according to Bloomberg News, and compared to a revised 0.8-percent drop in November.
Many consumers have turned to saving in the last few months as the United States, the world’s largest economy, grapples with a serious recession that began in December 2007. The US economy shrank 3.8 percent in the fourth quarter of last year, the largest quarterly drop in 27 years.
For the whole of 2008, consumer spending climbed 3.6 percent, the smallest increase since 1961.