By Andrea Hopkins, Reuters
U.S. consumer spending surged 0.9 percent in January, just below market expectations, as shoppers spent all their income and dipped into savings despite a pickup in inflation, a government report showed on Wednesday.
The Commerce Department said personal income grew 0.7 percent in January, the biggest gain since September and above Wall Street forecasts for a 0.6 percent rise.
But consumers spent even faster, notching the largest spending increase since July and producing a -0.7 percent saving rate. It was the third straight month in which Americans have tapped savings to finance their spending. The personal saving rate — the proportion of money Americans sock away — has not been above zero since March 2005.
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