Personal Spending Rises in January as Incomes Drop

Personal spending rose 0.2% in January as incomes fell by the most in 20 years, the Commerce Department said Friday.

The upturn followed a 0.1% gain in December and matched economists’ median estimate, Bloomberg News reported.

Personal incomes fell 3.6%, the largest decrease since January 1993. Economists’ had forecast a 2.4% drop, Bloomberg said.

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