Consumer Spending in U.S. Declines as Sandy Reduces Wages

Americans unexpectedly pared spending in October as superstorm Sandy depressed wages, showing the world’s largest economy is cooling as lawmakers seek ways to avoid the so-called fiscal cliff.

The 0.2 percent decrease in purchases followed a 0.8 percent gain, Commerce Department figures showed in Washington. Adjusted for inflation, the decline was 0.3 percent, the biggest in more than three years. Incomes were little changed last month as the biggest Atlantic storm to ever hit the U.S. shaved $18.2 billion in wages at an annual rate.