Growth in consumer spending will slow significantly, a study by Bank of America says. While America's shoppers increased spending by 5.4 percent this year, that growth is likely to slow to 3 percent next year. Economists at the bank attribute the decline to slower growth in income and eroding consumer confidence.
Spending on durables, such as cars, furniture, and appliances, will decline from 12 percent gains in 1983 and 1984 to a 3.5 percent rate in '85, the bank predicts. It also believes spending on nondurables, like clothing and food, will decrease from its present growth rate of 5 percent to a 2.8 percent rate in 1985 .