November personal spending falls 0.6 %
WASHINGTON — Consumer spending fell for a fifth straight month in November, the longest weak stretch in a half-century, while incomes declined under the weight of massive job layoffs.
The Commerce Department reported this morning consumer spending fell by 0.6 percent last month, slightly smaller than the 0.7 percent drop that economists had expected.
Americans' incomes fell by a worse-than-expected 0.2 percent. It was the first decline since July and reflected in part the fact that more than a half-million jobs were cut in November as the recession deepened.
The 0.6 percent drop in consumer spending followed an even larger 1 percent fall in October. However, the steep plunge in gasoline prices, which is actually good news for consumers, made the declines look worse.
Still, economists think the overall trend for consumer spending is down, given the problems facing the economy including the longest recession in a quarter century.
By The Associated Press
