Spending by consumers declined for the first time in four months in January, as shoppers curbed their spending amid growing tensions over Iraq, rising unemployment and higher oil prices. Personal spending slipped 0.1pc in January from February, the Commerce Department said, despite a 0.3pc increase in incomes. Many of the major retailers in the US have reported declines in same-store sales in the first months of the year. Earlier today, Irish crystal glass firm Waterford Wedgwood said it has missed targets for January and February, citing "weak demand from the major US store groups".
The drop in consumer spending in January was unexpected, with analysts forecasting a 0.1pc increase on the month. According to the Commerce Department figures, the decline was led by weaker spending on durable goods - big ticket items such as cars and washing machines - which fell 5.7pc. ///www.fxcentre.com