US consumer spending fell in December, the biggest drop in 9 years

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US consumer spending fell in December, the biggest drop in 9 years
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U.S. consumer spending tumbled 0.5 percent in December, the biggest decline in nine years.

The Commerce Department says the fall in consumer spending followed sizable gains of 0.7 percent in October and 0.6 percent in November.

December's result means that spending for the quarter slowed significantly, a primary factor in the slowing of overall economy in the final three months of the year. Gross domestic product decelerated to a growth rate of 2.6 percent after a 3.4 percent gain in the third quarter. Incomes jumped 1 percent in December, though slipped 0.1 percent in January. The government did not release spending data for January because of delays stemming from the government shutdown.

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