U.S. consumer spending weakest since 2009, inflation muted

U.S. consumer spending recorded its biggest decline since late 2009 in December, with households appearing to save the extra cash from cheaper gasoline, which could support future consumption. The Commerce Department said on Monday consumer spending dropped 0.3 percent after a downwardly revised 0.5 percent increase in November. Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, falling 0.2 percent in December after a previously reported 0.6 percent increase. When adjusted for inflation, consumer spending dipped 0.1 percent, the weakest reading since last April, after increasing 0.7 percent in November.

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