Consumer spending in U.S. falls by $28 billion in December

Jan. 29 (UPI) -- U.S. consumer spending in December decreased for the second straight month, but at a smaller rate than the previous month, the Commerce Department said in its monthly report Friday.

Personal consumption expenditures fell by $28 billion, the report said, a decline of 0.2%. The decline for November was 0.7%.

The department said personal income for December increased by $116.6 billion while disposable income rose $111.6 billion.

Real personal expenditures, meanwhile, decreased by almost $80 billion.

Spending on recreational goods and vehicles lost the most ground, along with food services and accommodations. Higher spending was found in motor vehicles and healthcare.

"The December estimate for personal income and outlays were impacted by the response to the spread of COVID-19," the report said.

The report notes that the full impact of the coronavirus on the U.S. economy cannot be seen in the consumer spending and personal income figures.

"The increase in personal income in December primarily reflected increases in government social benefits, compensation, and personal dividend income that were partly offset by a decrease in proprietors' income," the report added.