Personal spending jumped by a larger amount than expected in January but Americans' incomes barely budged. The weak income growth could depress spending in the months ahead, acting as a further drag on the fragile economic recovery.
The Commerce Department said that personal spending rose by 0.5% in January, slightly better than expected. But incomes edged up only 0.1%, significantly lower than the 0.4% gain that economists had expected.
The income gain was the weakest showing in four months and raised more concerns about whether consumers will be able to keep spending at a sufficiently strong pace to support an economic rebound.
