U.S. consumer spending encountered its biggest decline in December and at a rate not seen since late 2009.

The country's consumer spending, which represents more than two-thirds of the U.S. economic activity, fell by 0.3 percent following gains of 0.5 percent during November, according to the U.S. Department of Commerce.

The 0.3 percent drop is reportedly the largest decline since September 2009. The consumer-spending decline for December was attributed to lackluster spending at gas stations, in addition to "weak auto receipts and weather-related softness in demand for utilities."

Despite the slip in consumer spending, the real gross domestic product (GDP), which represents the production of goods and services in the U.S., increased at an annual rate of 2.6 percent for 2014's fourth quarter. The Department of Commerce's Bureau of Economic Analysis (BEA) noted the real GDP during the third quarter encountered an increase of 5 percentage points.

"The increase in real GDP in the fourth quarter reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, exports, nonresidential fixed investment, state and local government spending, and residential fixed investment that were partly offset by a negative contribution from federal government spending," wrote the BEA.

U.S. Secretary of Commerce Penny Pritzker said the advance estimate of the 2.6 percent real GDP was augmented by consumer spending, which increased at its fastest rate since 2006 and reiterated the declining gasoline prices.

"We must build on this momentum by continuing to invest in areas that will grow our economy and create good American jobs, including infrastructure, trade and workforce training," said Pritzker in a statement. "Through our 'Open for Business Agenda', the U.S. Commerce Department is working to expand U.S. exports, increase investment in the United States, strengthen American manufacturing, ensure our workers have the skills to get jobs businesses need to fill, unleash more of our data, and provide businesses and communities with environmental intelligence, all of which help create jobs and keep America more competitive in the global economy."

Jason Furman, chairman of the Council of Economic Advisers, said the fourth quarter's economic growth was "consistent" based on a "broad range of indicators," which also showed improvements in the labor market and increased consumer sentiment and domestic energy security.

For the full year of 2014, the U.S. GDP grew at 2.4 percent, which is the best performance since 2010.

__

For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO or contact via email: m.oleaga@latinpost.com.

Related