Spending dropped 1 percent in October

WASHINGTON, Nov. 26 (UPI) -- Consumer spending dropped for the fourth consecutive month, falling sharply in October, the U.S. Commerce Department said Wednesday.

Spending dropped by 1 percent, compared to the previous month, following a decline in September of 0.3 percent from August, the Bureau of Economic Analysis said.

Although spending dropped, personal income increased by 0.3 percent in the month and disposable income gained by 0.4 percent, or by $45.1 billion, the monthly report said.

Purchases of durable goods -- items expected to last more than three years -- dropped sharpest, falling 3.8 percent in October, after falling 3.6 percent in September.

For September and October, "purchases of motor vehicles and parts accounted for most of the decreases in durable goods," the report said.

But, non-durable goods purchases also declines, down 0.6 percent in both months.

Core prices, excluding food and energy costs, held nearly steady, falling "less than 0.1 percent" after a September increase of 0.2 percent. But, the overall consumer price index declined in the month, down 0.6 percent, the government said.