December incomes, spending rose as expected
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WASHINGTON - U.S. incomes and spending rose as expected in December, while core consumer prices gained less than anticipated, a government report showed on Thursday.
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U.S. consumer spending rose a  sharper-than-expected 0.7 percent in October, but rising food  and energy prices ate up much of that gain, a government report  showed on Wednesday.
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US consumer prices increase by more than expected in January, figures show, as medical and food costs rose.
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A closely watched measure of future economic activity rose for a second consecutive month in December, pointing to sustained, gradual growth.
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Personal incomes rose in January at the fastest clip in a year, bolstered by bonus payments to high-income executives and pay raises for federal workers. The extra income helped support a better-than-expected rise in consumer spending.
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Consumers kept a closer eye on their wallets as they moved into the holiday shopping season, boosting their spending by a modest 0.2 percent in November.
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U.S. personal incomes rose 1.5  percent in the second quarter of 2004, the fastest pace of  growth in more than three years as income gains sped up in 33  states, the Commerce Department said on Tuesday.
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U.S. incomes and spending rose in  October, providing the means for consumers to keep spending as  the holiday shopping season approached, while core consumer  prices rose modestly, the government reported on Thursday.
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The service sector of the U.S. economy saw activity grow in December, amid continued advances for employment and increasing prices, a report from a private research group said Wednesday.
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The cost of Christmas rose this year, but some surprising elements got cheaper.
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A key gauge of future U.S. economic  growth rose for a second straight month in December,  a private  research firm said on Thursday.
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The outlook for the holiday season grew more positive Tuesday after major retailers, including Wal-Mart Stores Inc. and J.C. Penney Co. Inc., offered bullish comments about consumer spending as they reported solid earnings increases for the third quarter.
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U.S. retail sales jumped a  larger-than-expected 1.2 percent in December as lower gas  prices left shoppers with more cash to spend, while cheaper oil  also pulled down import prices more than anticipated,  government reports showed on Thursday.
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Market research firm reports online spending was strong this holiday season, up 19 percent from last year.
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Improving labor market conditions and cheaper energy prices led to a sharp increase in a widely watched indicator of consumer confidence in the economy in December, a good sign for growth heading into the new year.
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Consumer spending rose in December by the most in five months, helping the economy weather a slump in manufacturing that extended into 2007.
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U.S. personal spending jumped a much bigger-than-expected 1.1 percent in November, the sharpest rise in more than two years, while prices rose, a Commerce Department report showed on Friday.