Consumer spending drop hurts economy
WASHINGTON — Consumers slashed spending for an unprecedented sixth straight month in December, feeding the already painful recession as millions of households opted to save rather than buy.
The drop in consumer spending, the economy's key driver, means little help is in sight for struggling retailers, homebuilders and automakers.
Personal consumption spending dropped 1 percent in December, a sixth consecutive decline that represented the longest stretch of weakness in a half-century of record keeping. Spending had declined 0.8 percent in November, even worse than first reported, the Commerce Department reported.
