WASHINGTON – the Consumer slowed the growth in spending in November and income growth was flat, two worrying signs at the start of the holiday shopping season.
The Commerce Department says that consumer spending grew 0.2 percent in November, the weakest result since a 0.1 percent rise in August. Expenditure had posted healthy gains of 0.7 percent in September and 0.4 percent in October.
Incomes were unchanged in November after gains of 0.5 percent in October and 0.4 percent in September.
The consumer is expected to limit their spending in the fourth quarter, which will contribute to a slowdown in the growth. So far, the spending in the holiday shopping season is not as strong as last year. That has led that some stores offer more discounts and incentives, such as free shipping.