The Commerce Department said today consumer spending fell 0.2 percent after a 0.8 percent increase in September. It said Sandy had impacted on income growth last month, but it had made adjustments to wages for storm-related work interruptions.

When adjusted for inflation, consumer spending fell 0.3 percent, the first decline since June, after rising 0.4 percent the prior month.

"The report reinforces the fact that US growth in Q4 would be weak," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

It was also the largest decline since September 2009 and implied growth in consumer spending this quarter would struggle to exceed the third-quarter's 1.4 percent annual pace, which was the slowest in more than a year.