U.S. Consumer Spending Rose In December, Confidence Slips This Month

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Source: REUTERS

(Reuters) - U.S. consumer spending rose in December, but an ebb in consumer confidence and signs of cooling in factory activity this month suggested economic growth could moderate in the first quarter.

The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.4 percent after advancing 0.6 percent in November.

Last month's rise beat economists' expectations for a 0.2 percent gain.

While December's increase provided a firmer base for first-quarter spending, weak income growth could erode momentum. Income was flat after rising 0.2 percent in November.

Read more: http://www.reuters.com/article/2014/01/31/us-economy-consumer-idUSBREA0U0VK20140131