Economic Reports Hint At Slowdown

Consumer spending rose in October at the weakest pace in six months while Americans’ incomes actually declined for the first time in nearly two years, the government reported Thursday, providing fresh evidence that the economy is shifting into a lower gear.

The Commerce Department said that personal incomes fell by 0.2 percent last month, reflecting a big swing in federal payments to farmers, while consumer spending edged up just 0.2 percent.

In another sign of economic weakness, the Labor Department said the number of laid-off workers filing new claims for unemployment benefits rose to 358,000 last week, the highest level in more than two years.