The expected slowdown in consumer spending is one reason many economists are looking for overall economic growth to slow further this year.
GDP grew 3.5 percent last year, down from a five-year high of 4.2 percent in 2004.
The US Federal Reserve, trying to engineer a slowdown in growth that will keep inflation under control, was expected to boost rates for a 14th time at its meeting yesterday.
A price gauge closely watched by the Fed that excludes food and energy rose by a tiny 0.1 percent in December, down from a 0.2 percent rise in November, the Commerce Department reported on Monday. For December, consumer spending rose by a bigger-than-expected 0.9 percent while incomes were up by just 0.4 percent. That forced the savings rate down for the month to a negative 0.7 percent.
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