Surprising everyone the US Commerce Department on Monday revealed that consumer spending for the month of December 2009 witnessed a sluggish growth. Inflation adjusted consumer spending for the month rose a seasonally adjusted 0.1 per cent, slowest since a decline of 0.7 per cent recorded in September. Growth rate for the last quarter of the year remained at 2 per cent.

Owing to the slow growth in consumer spending, and more than expected rise in income, personal savings rate in the country jumped to a six-month high of 4.8 per cent of disposable income.

As per the Commerce Department data, while wages and salaries rose 0.1 per cent in December, income from small business, assets and rental increased 0.8 per cent, 0.6 per cent and 0.7 per cent respectively.

Real income excluding transfer payments increased 0.2 per cent registering a third straight gain. Interestingly, out of the four key recession expansion markers - transfer payment, non-farm payrolls, industrial output and business sales - only payrolls have failed to show some significant growth, all others are already showing strong signs of a quick and stable recovery.