December consumer spending up 0.4% but savings drop to 10-year low

Washington

US consumer spending rose solidly in December as demand for goods and services increased, but the gain came at the expense of savings, which dropped to a 10-year low in a troubling sign for future consumption and economic growth.

The Commerce Department said on Monday that consumer spending, which accounts for more than two-thirds of US economic activity, increased 0.4 per cent last month after an upwardly revised 0.8 per cent increase in N…