U.S. consumer spending weakest since 2009, inflation muted

REUTERS — 8:33 AM ET 02/02/15WASHINGTON, Feb 2 (Reuters) – U.S. consumer spending recorded its biggest decline since late 2009 in December, with households appearing to save the extra cash from cheaper gasoline, which could support future consumption.The Commerce Department said on Monday consumer spending dropped 0.3 percent after a downwardly revised 0.5 percent increase in November. It was the largest drop since September 2009.Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, falling 0.2 percent in December after a previously reported 0.6 percent increase.When adjusted for inflation, consumer spending dipped 0.1 percent, the weakest reading since last April, after increasing 0.7 percent in November.The data was included in Fridays fourth-quarter gross domestic product report, which showed the economy growing at a 2.6 percent annual pace, with consumer spending rising at a brisk 4.3 percent annual rate – the fastest since 2006.

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