FXstreet.com (Barcelona) - U.S. citizens seem to have cut spending substantially while reactivating their savings capacity on advance of a tough period with unemployment growing fast, according to data released by the U.S. Commerce Department.
Personal spending has declined 1.0% in December, following a 0.8% decline in November, revised down from the 0.6% drop previously estimated.
Personal income declined 0.2% a somewhat softer decline than the 0.4% expected by market analysts, while November's reading has been revised down to a 0.3% decline, from the 0.2% drop previously released.
Personal savings, as a percentage of disposable personal income, have posted a 3.6% increase in December, following a 2.8% increase in November.
The PCE - Prices Index has posted a 0.5% decline in December, following a 1.1% decline in November, although, excluding the seasonal influences from food and energy costs, the Core PCE Prices Index has remained unchanged for second consecutive time in December.