Inflation-Adjusted Consumer Spending Turns In Weakest 2-Month Showing Since Hurricane Katrina

WASHINGTON D.C. (AP) — Consumer spending, the main driver for economic growth, is stalling out.

The Commerce Department says that after adjusting for inflation, the amount that consumers spent in January was unchanged from what they spent in December.

Outside of the disruptions from Hurricane Katrina, consumer spending has not been this weak since late 2001 – when the country was struggling to emerge from recession.

Before inflation was removed, spending posted a 0.4 percent increase in January, a gain that reflected higher prices consumers were having to pay for a wide range of products, from energy to food.