Consumers spend more after incomes rise again

WASHINGTON (AP) ? Consumers earned a little more in January and spent most of the extra money. The gains should keep the economy growing at a modest pace.

The Commerce Department says consumer spending increased 0.2 percent in January. That’s also better than December’s reading of no change.

Americans’ income rose 0.3 percent, the second straight monthly increase.

Income barely kept pace with inflation last year. So the increases are a positive sign that consumers will have more money to spend. Consumer spending is important because it accounts for 70 percent of economic activity.