Spending by US consumers fell for the first time in five months in September, and by the largest amount in percentage terms since December 2008, data released by the Commerce Department on Friday show.
Consumer purchases decreased by $47.2bn, or 0.5 per cent - in line with analyst estimates - after a 1.4 per cent increase the month prior. The government revised the August reading up from an originally reported increase of 1.3 per cent. Economists largely attributed the decline to the end of the government’s “cash for clunkers” program, which had boosted spending on cars.
On an inflation-adjusted basis, spending declined 0.6 per cent in September and increased by 1 per cent in August.
Rising unemployment contributed to a 0.2 per cent decline in wages and salaries, the figures showed.
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