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February 29th, 2008
Posted: 11:32 AM ET
NEW YORK (CNNMoney.com) — Consumer spending rose slightly last month as rising prices forced Americans to shell out more, according to a government report released Friday. The Commerce Department said spending by individuals rose 0.4 percent in January, but that was due primarily to inflation. In constant dollars, spending held flat. “Consumers were a little more conservative,” said Wachovia analyst Sam Bullard. “There is lots of pressure on the consumer now — they are holding discretionary purchases off.” Economists surveyed by Briefing.com had forecast a 0.2 percent gain in non-inflation-adjusted spending for the month. December’s rise was revised to 0.3 percent. –From CNNMoney.com’s David Goldman |
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