US spending increases in December

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US consumer spending rose less than expected in December as people opted to save more.

Spending increased by just 0.2%, after growth of 0.7% in November, according to the Commerce Department. Economists had expected growth of 0.3%.

For the whole of 2009, consumer spending fell 0.4% - its biggest drop since 1938.

Consumer spending is crucial because it accounts for more than two-thirds of the US economy.

December was the third consecutive month of consumer spending gains.

While the economy is growing again - at its fastest pace for six years in the fourth quarter - high unemployment and fears of a renewed downturn are curbing spending.