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US consumer spending declines in Sept.
(Xinhua)
Updated: 2008-10-31 23:22

WASHINGTON -- US consumer spending declined by  0.3 percent in September, the biggest drop in four years, the Commerce Department reported Friday.

Meanwhile, personal income, the fuel for future spending, rose by a modest 0.2 percent in September, just half of the August rise.

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Americans' disposable personal income, or after-tax income, increased by 1.3 percent in September, up from 0.8 percent in August.

Consumer spending accounts for two thirds of the US overall economic activity and is a major force pushing the economy to grow.

Some analysts believe that spending could falter further in coming months as the economy is struggling through a persistent housing slump and a credit crunch.