Spending accelerated in December

WASHINGTON, Jan. 31 (UPI) -- Consumer spending accelerated in December while incomes rose 0.4, the U.S. Bureau of Economic Analysis reported Monday.

The bureau said personal spending rose 0.7 percent, which brings it back to the growth rate posted in October. In November, spending growth slowed briefly to 0.3 percent, the bureau said, issuing a revised figure from a month ago.

Spending for December rose slightly higher than the 0.6 percent economists had predicted. Spending on goods rose 1.2 percent and spending on services was up 0.4 percent.

In turn, wages and salaries at goods-producing firms increased by $1.5 billion after decreasing by $2.5 billion in November. Compensation at service-oriented firms rose by $14 billion after rising $8.4 billion the previous month.

Government wages also rose, gaining by $1.6 billion.

Personal savings fell slightly from $634.4 billion in November to $614.1 billion, the report said.