Consumer spending cools in Dec while savings hit three-year high

Washington

US consumer spending was unchanged in December as households cut back on purchases of cars and unseasonably mild weather weighed on demand for utilities, but a jump in savings to a three-year high suggested there is enough muscle to boost consumption in the months ahead.

The Commerce Department said on Monday the unchanged reading in consumer spending followed an upwardly revised 0.5 per cent increase in November. When adjusted for inflation, consumer spending edged up 0.1 per cent after a 0.4 per cent gain in November.