Consumers in the US have spent a lot in the month of January 2013 on utilities. The income for US consumers has taken a deep plunge, which is said to be the biggest in 20 years. According to the commerce department, spending by US-based consumers has increased by 0.2 percent in January, after a revised 0.1 percent increase in December 2012.
The amount spent on buying goods was earlier estimated to have increased by 0.2 percent in the month of December 2012, though the increase in January was expected to take place by consumers, as well as the economists. These figures account for 70 percent of the US economy and when it is adjusted for inflation, it accounts for a 0.1 percent.
Despite the rise in spending in the month of January, the figures that were registered were supported by a rise in services, which was probably related to utility consumption, after a brief lull during the month. Even amounts spent on procuring goods had fallen, from what was expected at the end of 2012.
Income has also taken a hit, falling to 3.6 percent, which is the lowest figure registered since 1993. Households are also feeling the pinch, as they they have lesser money to spend. Usable income dropped by 4 percent in January 2013, after rising 2.7 percent in December 2012.
