US makes cuts to boost saving

US HOUSEHOLDS saw income growth accelerate to 0.5 per cent in the month to December, but cut back spending by 0.1 per cent in real terms in the month, the Commerce Department said yesterday.
Spending is now at its weakest since June 2011, though economists were cautiously optimistic that rising wages will keep supporting demand through 2012. Despite an expected recession in the Eurozone, the US economy is not expected to contract.