U.S. personal income fell for the first time in more than three years in January...
WASHINGTON - U.S. personal income fell for the first time in more than three years in January and consumer spending dropped by the most since 2009 in December, putting the economy on a weak growth path early in the first quarter.
“A modest slowdown remains the most likely path for 2019,” said Eric Winograd, senior U.S. economist at AllianceBernstein in New York. “We shouldn’t expect any action from the Fed into at least the second half of the year.” The Commerce Department did not publish the January consumer spending portion of the report as the collection and processing of retail sales data was delayed by a 35-day partial shutdown of the government that ended on Jan. 25.
The December data was included in the fourth-quarter gross domestic product report published on Thursday, which showed consumer spending growing at a 2.8 percent annualized rate during that period, slower than the third quarter’s robust 3.5 percent pace. Still, consumer spending likely remains supported by a strong accumulation of savings, which surged to a six-year high of $1.2 trillion in December from $961.3 billion in November. The saving rate jumped to a three-year high of 7.6 percent. In addition, consumer sentiment remains high.
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