Spending rose 0.4 percent in January after a 0.1 percent gain in December, the Commerce Department said today. The December figure was revised down from a 0.4 percent increase.
Income grew 0.3 percent in January after no increase in December.
The overall spending increase in January reflected a 0.8 percent jump in spending on services, the effect of higher heating bills. It was the biggest increase in spending on services since October 2001.
Spending on durable goods such as autos fell 0.3 percent. And spending on nondurable goods, which covers things like clothing and food, dropped 0.7 percent.