Consumer spending up in January as fuel prices fall

Washington

CONSUMER purchases adjusted for inflation rose in January, a sign the plunge in petrol prices is helping boost the biggest part of the US economy. But manufacturing was down in February and construction spending dipped in the same month.

The 0.3 per cent increase in consumer spending followed a 0.1 per cent drop the prior month, a Commerce Department report showed on Monday in Washington. So-called nominal spending, which doesn't take into account changes in price, declined 0.2 per cent, more than estimated, while incomes grew 0.3 per cent for a second month.

US stocks rose, with the Nasdaq Composite Index climbing above 5,000 for the first time in 14 years, as investors assessed the strength of consumer spending. The Standard & Poor's 500 Index climbed 0.4 per cent to 2,113.40 at 10:40 am in New York. Nasdaq Composite added 0.7 per cent …