Rising prices in October offset modest gains in income, according to the Commerce Department.
Amid higher prices and modest income growth, U.S. consumers cut back on spending in October, the Commerce Department reported this week.
While incomes rose 0.2 percent last month, the gains were offset by a 0.3 percent hike in consumer prices, leaving real after-tax revenue down 0.1 percent. Consumer spending was flat when adjusted for inflation.
Service-sector payrolls rose by $4.2 billion last month, down from a $32.23 billion increase in September, while payrolls decreased at goods-producing businesses and other manufacturers.