U.S. Consumer Spending Rose in December, Saving Rate Dipped

U.S. consumer spending rose at a solid pace in December after an upwardly revised advance a month earlier as shoppers splurged during the holiday season. While incomes also rose, the saving rate fell to a fresh 12-year low.

Purchases, which account for about 70 percent of the economy, climbed 0.4 percent after a revised 0.8 percent advance, Commerce Department figures showed Monday. The December gain matched the median forecast in a Bloomberg survey. Incomes also rose 0.4 percent as worker pay climbed the most in three months.