US consumer spending declined by 1.0 percent in October, the biggest amount since the 2001 terrorist attacks, the Commerce Department reported on Wednesday.

The October drop in consumer spending was worsen than the 0.9 percent decline expected by analysts and the 0.3 percent drop in September.

Personal income, the fuel for future spending, however, rose by0.3 percent in October, up from a 0.1 percent gain in the previous month.

Americans' disposable personal income, or after-tax income, gained by 0.4 percent last month, compared with 0.1 percent gain in September.

The personal saving rate, personal saving as a percentage of disposable personal income, was 2.4 percent last month, up from 1.0 percent in September.

Consumer spending accounts for two thirds of overall economic activity and is a major force pushing the economy to grow.

The report came after revised government data showed that the economy shrank at an annual rate of 0.5 percent in the third quarter of this year, steeper than the 0.3 percent pace previously estimated.

Many analysts believe that the overall economy will continue to decline in the current quarter and early next year.

(Xinhua News Agency November 27, 2008)