Consumer spending in December fell to lowest level in 9 years

March 1 (UPI) -- One day after data showed better-than-expected economic growth at the end of 2018, the Commerce Department on Friday reported consumer spending was dismal.

Overall, spending fell 0.5 percent in December, despite 1.1 percent gains in personal income, the department said in a report Friday.

The figures showed the most precipitous decline since 2009 when the U.S. economy was emerging from the Great Recession.

Thursday, department data showed the U.S. economy grew 2.6 percent in the fourth quarter of 2018, beating most analysts' expectations.

The Advance Monthly Retail Sales report, which had been delayed by the government shutdown, includes income figures for December and January but has spending data from only December.

Friday's report, however, showed inflation slowed to 1.7 percent in December from 1.8 percent the month before.

Consumers spent less on new cars and trucks, possibly because of year-end discounts and other specials. They spent less on electricity and gas, the data show.

Another contributing factor in the decline, experts believe, was the start of a 35-day federal shutdown that furloughed 800,000 workers.