Consumer Spending Drops in October

November 30, 2012 12:18 PM EST
Investors were a touch jittery on Friday after government figures showed personal spending declined for the first time in 5 months. In October, personal spending declined 0.2 percent. Economists were expecting a flat reading, though the effects of Hurricane Sandy are seen as somewhat difficult to quantify.

Consumer spending accounts for 70 percent of the U.S. economy and the implications of a slowdown are significant. However, for now, despite some minor worry investors are taking a cautious stance as they wait for better visibility on spending ex-Sandy.

The government also reported personal incomes were flat in October, compared to estimates for a gain of 0.2 percent.

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