Consumer Spending Essentially Flat in October

Washington, DC, Nov. 23, 2011 — Consumer spending slowed in October, according to the Commerce Department.

Consumer spending rose 0.1% last month, the Commerce Department said. Yet personal income rose even faster, up 0.4%, to mark the biggest increase since March as Americans set aside more savings.

The pattern of income and spending growth in October reverses a recent trend. Consumers had been financing their purchases mainly by dipping into their savings.

Last month the personal savings rate rose to 3.5% of disposable income from 3.3% in September.