Consumer spending down 1 percent in October - WKOW 27: Madison, WI Breaking News, Weather and Sports

Consumer spending down 1 percent in October

WASHINGTON (AP) -- As the financial crisis was gaining force, Americans cut back on their spending in October by the largest amount since the 2001 terrorist attacks.

  The Commerce Department reported Wednesday that consumer spending plunged by 1 percent last month, even worse than the 0.9 percent decline that had been expected.

  It says personal incomes were up 0.3 percent last month, slightly better than the 0.1 percent gain analysts had expected.

  The big decline in spending in October underscores concerns that the economy is falling into a deep recession.

  Consumer spending accounts for two-thirds of total economic activity.

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