Consumer spending declined in September, the seond month in a row.
U.S. consumer spending dropped for a second month in September when adjusted for inflation, the first back-to-back decline in 15 years and a sign that rising fuel costs left Americans with less money for shopping.
Personal spending adjusted for inflation, which strips away the rise in energy prices, fell 0.4 percent after falling 1 percent in August, the Commerce Department said today in Washington. Before the adjustment, spending rose 0.5 percent last month after a 0.5 drop in August.
“Consumer spending was really slowing down a lot in August and September,” said Kevin Logan, senior market economist at Dresdner Kleinwort Wasserstein in New York. “We’re entering the fourth quarter on a weak note.”