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| Version 1 | Version 2 |
|---|---|
| Gloomy Christmas for US consumers | Gloomy Christmas for US consumers |
| (about 1 hour later) | |
| US consumer spending slipped to a 15-month low in December as financial pressures hit households, official figures show. | US consumer spending slipped to a 15-month low in December as financial pressures hit households, official figures show. |
| The US Commerce Department said spending inched up 0.2% over the key Christmas shopping period. In November the spending growth rate hit 1%. | The US Commerce Department said spending inched up 0.2% over the key Christmas shopping period. In November the spending growth rate hit 1%. |
| The figure is being seen as a further sign of the weakness of the US economy. | The figure is being seen as a further sign of the weakness of the US economy. |
| Figures released on Wednesday showed US economic growth has slowed sharply, and fears of a recession are growing. | Figures released on Wednesday showed US economic growth has slowed sharply, and fears of a recession are growing. |
| Downturn | Downturn |
| Higher lending costs, more expensive food and energy bills, and lower house prices are taking their toll on US consumers, who account for two thirds of the world's largest economy. | Higher lending costs, more expensive food and energy bills, and lower house prices are taking their toll on US consumers, who account for two thirds of the world's largest economy. |
| "Shoppers took a holiday from the malls in December," said Joel Naroff of Naroff Economic Advisers. | "Shoppers took a holiday from the malls in December," said Joel Naroff of Naroff Economic Advisers. |
| "In other words, 'drop shopping' not 'shop till you drop' was the catch phrase." | "In other words, 'drop shopping' not 'shop till you drop' was the catch phrase." |
| See how the US economy has fared since the last three months of 2003 | |
| Data out earlier in the week showed the US economy grew at an annual rate of just 0.6% from October to December. | Data out earlier in the week showed the US economy grew at an annual rate of just 0.6% from October to December. |
| This compared with the previous three months, between July and September, when the economy was growing at annual rate of 4.9%. | This compared with the previous three months, between July and September, when the economy was growing at annual rate of 4.9%. |
| This compounded gloomy news from the International Monetary Fund this week. | This compounded gloomy news from the International Monetary Fund this week. |
| It said in a report that even by the end of 2008, the US economy would still only be growing at a year-on-year rate of 0.8%. | It said in a report that even by the end of 2008, the US economy would still only be growing at a year-on-year rate of 0.8%. |
| The Federal Reserve, the US central bank, has sharply cut interest rates on two separate occasions over the past two weeks to try and prevent a recession. | |
| And the White House is also working furiously to boost morale among consumers and businesses with a package - of tax incentives worth billions of dollars - which is currently being debated in the Houses of Congress. | |
| A key report out on Friday showing job growth during January will be closely watched for signs of rising unemployment. | |
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