Consumption Flat, Durable Spending Sinks
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U.S. consumer spending was unexpectedly flat in August, government data showed on Thursday, as shoppers exercised restraint after splashing out even more than previously thought during the previous month.
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WASHINGTON - Americaâs consumers came off a buying binge and were less jolly spenders in November. Newhome sales, meanwhile, cooled from a record high, while demand for big-ticket manufactured goods rebounded.
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US consumer spending, a key pillar of the nation&#39;s economy, was flat in August as Americans reacted to surging gasoline prices.
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U.S. consumers will curb spending this year after being hit by continued troubles in the housing sector, but business investment is set to pick up, adding to economic growth later this year, according to a survey of economists released on Sunday.
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Consumer spending edged up a slim 0.2% in November, much weaker than October&#39;s 0.8% jump as purchases of new cars dropped sharply, a government report said Thursday.
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The Commerce Department says personal spending was flat, while incomes surged four-tenths of one percent, marking the biggest increase in three months.
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Consumers continued to curtail their spending last month as rising gasoline prices dampened purchases of other goods, a fresh indication of a cooling economy.
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US claims for jobless benefits jumped last week, while consumer spending was unexpectedly flat in August as shoppers closed their wallets after splashing out the previous month, the government said on Thursday.
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America&#39;s consumers came off a buying binge and were somewhat less jolly spenders in November. New-home sales, meanwhile, cooled from a record high, while demand for big-ticket manufactured goods rebounded.
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In WASHINGTON story headlined, &quot;US consumer spending softened in November,&quot; please read in the fifth graph... meaning that Americans were setting aside 0.3 cent out of each dollar... instead of... setting aside 3 cents out of each dollar.
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The minister of economic and fiscal policy, Hiroko Ota, said there had been little change in price trends in January, after a report showed inflation slowed to zero percent for the first time since May. âPrices continue to be flat,â Ms. Ota said. Core consumer prices, which exclude fresh food, were unchanged from a year earlier, matching the median estimate of economists surveyed by Bloomberg News. Household spending climbed 0.6 percent in January, the statistics bureau said, the first increase since December 2005. Economists expected a 0.3 percent drop. The jobless rate was 4 percent, unchanged after the previous monthâs figure was revised from 4.1 percent, the agency said.
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Consumer spending in June fell by 0.9 percent, the steepest drop since August 2005.
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The Japanese government downgraded its view on the economy slightly on Tuesday, citing weaker exports and output, but it said a recovery was continuing due to steady domestic demand, in terms of both personal consumption and capital spending.  "The economy continues to recover, while some weak movements have been seen recently," the government said in its monthly economic report.
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Why the housing bust and inflation havenât deterred American consumers â yet.
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NEW YORK - Consumers&#39; assessment of the economy held largely steady this month, according to a university research report released Friday.
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NEW YORK -- American shoppers took a breather last month as the worst housing recession in 16 years eroded demand for building materials, appliances, and furniture.
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Robust consumer spending on cars,  furniture and food helped the U.S. economy advance faster than  first thought in the third quarter, a government report showed,  while underlying inflation was the tamest in decades.