Spending Slows in January ; Incomes Rise As Tax Cut Goes Into Effect.

Summary

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WASHINGTON (AP) -- A tax cut that began last month gave consumers the biggest jump in their incomes in nearly two years. But Americans boosted their spending only slightly, a sign that many people are being cautious with their money even as the economy improves.

Consumers increased spending 0.2 percent in January, the smallest gain since June, the Commerce Department reported today. Personal incomes jumped 1 percent, reflecting the 2 percentage point reduction from the Social Security tax cut.

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Extract

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Spending Slows in January ; Incomes Rise As Tax Cut Goes Into Effect.

The small spending gain pushed total spending last month to an annual rate of $10.59 trillion, up 7.4 percent from the recess...

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