Accessibility links

Breaking News

US Consumer Spending Drops in December

A new report shows consumer spending in the United States dropped for a record sixth consecutive month in December - another sign the economy is deteriorating.

The report from the Commerce Department says spending fell one percent in the month. The drop is significant because consumer spending is the major force behind the U.S. economy.

Falling consumer demand has forced American companies to cut workers in an effort to save costs. The rising wave of unemployment has put pressure on American households to spend less money.

The report also shows Americans are saving more money, as they brace for the possibility of further job cuts.

Some information for this report was provided by AP and Reuters.