Investing.com - U.S. consumer spending was unchanged in December as households cut back on purchases of automobiles and unseasonably mild weather weighed on demand for utilities.
The Commerce Department said the flat reading in consumer spending followed an upwardly revised 0.5% increase in November.
With income outpacing spending, a jump in savings to a three-year high suggested there is enough muscle to boost consumption in the months ahead.
Savings surged to $753.3 billion in December, the highest level since December 2012, from $717.8 billion in November.
Income rose 0.3% after a similar gain in November, while wages and salaries increased 0.2% after shooting up 0.5% in November.