WASHINGTON -- Consumer spending dipped in October, the first decline in five months, as Superstorm Sandy took a big bite out of paychecks in the Northeast.
Personal consumption expenditures fell by $20.2 billion, or 0.2%, last month compared with September, the Commerce Department said Friday. Income growth was basically flat in October, increasing $800 million, or less than 0.1%.
Both figures came in below analyst expectations of about a 0.1% rise in spending and a 0.2% increase in personal income.
The Commerce Department said the impact of Superstorm Sandy, which hit the East Coast on Oct. 29-30, was felt in 24 states, particularly in New York and New Jersey.