WASHINGTON — U.S. consumers increased their spending in December at a slower pace, while their income grew by the largest amount in eight years. Income surged because companies rushed to pay dividends before income taxes increased on high-earners.
The Commerce Department said Thursday that consumer spending rose 0.2 percent last month. That's slightly slower than the 0.4 percent increase in November.
Income jumped 2.6 percent in December from November, the biggest gain since December 2004. The main driver of the increase was dividend payments, which companies accelerated to beat the January rise in income tax rates.
Wages and salaries grew 0.6 percent.
Consumer spending, which accounts for about 70 percent of economic activity, is expected to slow this year. That's because consumers are receiving less take-home pay starting this month because of an increase in Social Security taxes.
Analysts predict the January report will show slower income growth because most bonuses and dividends were paid out in December.
- Utahns' satisfaction with downtown Salt Lake...
- Inventor pushes solar panels for roads, highways
- CNBC ranks Utah 3rd best state for business;...
- GOED announces incentives for 500 new Utah jobs
- 3 simple steps for building financial...
- Amazon asks FAA for permission to fly drones
- UTA gains Davis County approval for bus rapid...
- Winter skiing at Park City resort hangs on...
- US unemployment aid applications fall... 11
- Utah gas prices climb 14 cents from... 9
- Utahns' satisfaction with downtown Salt... 7
- DeseretNews.com continues to see... 6
- Inventor pushes solar panels for roads,... 4
- Kearns-Tribune, Deseret News ask judge... 4
- House votes to make business tax break... 3
- Smith's store to anchor development at... 3