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U.S. Personal Spending Declines in October

MarketWatch (11/30/12) Jeffry Bartash

New U.S. Department of Commerce data show that U.S. consumer spending declined in October for the first time in five months. Economists surveyed by MarketWatch had forecast a 0.1% increase in spending, seasonally adjusted, and a 0.2% increase in personal income. Spending fell compared with income growth, so the personal savings rate edged up to 3.4% from 3.3%, but it remained near a five-year low. Federal government officials noted that Hurricane Sandy reduced wages and salaries in late October by $18.2 billion, likely contributing to the spending decline.