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Consumer spending supported 4th quarter growth in US economy

US Personal spending increased by .4% in December beating the market expectations of .2% but was below the .6% reading in the previous month. However, Personal income showed no gain in December reflecting a slowing in the employment growth. Economists were expecting that the economic growth will increase employment and income this year. Now if the income was low and spending increased that means consumers tapped out their savings to finance their spending. So the saving fell down to 3.9% in December which was the lowest monthly rate since last January.

 USD little bit strengthened after the data came out. US dollar index which gauge the performance of dollar relative to a basket of foreign currencies also went up and may find resistance at 81.53.