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US consumers tighten their belts as inflation bites

Spending rose 0.2% for January - below the 0.3% gain forecast and 0.5% increase in the previous month

The tight job market and low borrowing costs will continue to support consumers, whose confidence is getting a boost from optimism about lower taxes under Mr Trump.


CONSUMER spending rose less than projected in January as rising prices pinched Americans' wallets, leading inflation-adjusted purchases to fall by the most since 2009.

The 0.2 per cent advance in spending followed a 0.5 per cent increase in the prior month, the Commerce...

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