March 1, 2006 9:00 AM, EST

Personal Spending, Incomes Rise in January

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ersonal spending rose 0.9% in January, up from a revised 0.7% in December, the Commerce Department reported Wednesday.

The increase was just below economists’ forecast of a 1% gain, Bloomberg reported. December’s rise had been reported originally as a 0.9% gain.

An increase in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.

Personal incomes gained 0.7%, from a revised 0.5% rise in December. Economists had forecast a 0.6% gain.

Measured year-over-year with last January, incomes rose 5.8%, paced by a 5.1% rise in wages and salaries, Bloomberg reported.

nflation-adjusted spending on durable goods such as automobiles rose 1.3%.

Spending on services, which account for 60% of spending, fell 0.3%, the biggest decline in almost two years, Commerce said.