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.