Spending Rises; Other Data Is Subdued

Posted by Yen Ho

WASHINGTON (AP) — Consumer spending rose in January after falling for a record six straight months, pushed higher by purchases of food and other nondurable items. But the increase is expected to be fleeting given the problems facing the economy.

Several new reports on Monday showed little sign of an economic rebound, with nonresidential construction spending falling to its lowest level in more than a decade and manufacturing activity contracting for a 13th straight month.

The Commerce Department report on consumers showed spending rose 0.6 percent in January, better than the 0.4 percent gain that economists had expected.

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