Consumer spending dropped for the sixth straight month in December to 1 percent, the U.S. Commerce Department said Monday.

The drop went beyond forecasts of 0.9 percent from analysts, according to Bloomberg .

Consumers' spending has diminished as households are hit by the economic downturn and numerous companies are cutting workers. As a result the saving rate for Americans climbed to 3.6 percent in December compared to 2.8 percent the previous month.

The Commerce Department also said incomes fell 0.2 percent in December, the third continue drop but less than the 0.4 percent in November.

In the full 2008, consumer spending rose 3.6 percent f, the smallest gain since 1961, according to Bloomberg.