GETTING THRIFTIER, GIRDING FOR WORST

Consumer spending fell for a record sixth straight month in December as recession-battered households, worried about surging layoffs, boosted their savings rates to the highest level since May.

Personal consumption spending dropped by 1 percent in December, and incomes fell for the third straight month, down 0.2 percent, according to Commerce Department data.

Americans worried about the possibility of more job cuts boosted their savings rate to 3.6 percent of their after-tax incomes in December. That was the highest level since tax rebate checks temporarily pushed the rate up to 4.8 percent in May.

The depressing data weighed on the Dow Jones industrials, which fell 64.03 points to 7,936.83, and the S&P 500 index, which slipped 0.44 to 825.44. The Nasdaq composite index added 18.01 to 1,494.43.

Among individual stocks, Rockwell Automation declined 11 percent to $23.16 after first-quarter profit fell 26 percent and the company said 2009 earnings will fall below previous estimates, and as demand shrinks and manufacturers shut plants.

International Paper, the world’s biggest maker of corrugated packaging and office paper, also dropped 11 percent following a Goldman downgrade to “sell” from “neutral.”