WASHINGTON, Jan. 29 (Xinhua) -- U.S. consumer spending grew at a slower pace, and inflation pressure remained muted in December, 2017.
Personal consumption expenditures (PCE), which account for more than two thirds of the economic activity, rose 0.4 percent from the previous month in December, 2017, lower than the 0.8 percent increase in November, said the Commerce Department on Monday.
For the whole 2017, consumer spending increased 4.5 percent year on year, higher than the 4 percent growth in 2016.
Personal income rose 0.4 percent month on month in December, 2017, slightly higher than the 0.3 percent increase in November.
With consumer confidence at historic highs, the country's saving rate dropped to 2.4 percent in December, the lowest level since September 2005.
In 2017, the saving rate fell to 3.4 percent from the 4.9 percent in 2016.
PCE price index, an inflation gauge preferred by the Federal Reserve, rose 1.7 percent year on year in December, lower than the 1.8 percent increase in November, indicating muted inflation pressure.
While inflation remained below the Fed's 2 percent target, Fed officials expected to continue gradual interest rate hikes this year on the expectation that the economy will maintain steady growth momentum this year.
