Fears that consumers might cut their spending heading into the fourth quarter were further fueled today, following the release of an U.S. Commerce Department report.

U.S. consumer spending fell 0.5 percent in September, the first decrease in five months and the biggest decline since December, Reuters reported today.

The decline was in accordance with market expectations.

The spending decrease followed the expiration of ‘Cash for Clunkers,’ a government-funded rebate program that ended in August. Consumer spending, which generally accounts for more than two-thirds of U.S. economic activity, rose 1.4 percent in that month.

The popular program shored up overall third-quarter spending and helped give the economy a boost as it tries to emerge from its worst recession in about 70 years.

Spending adjusted for inflation and real disposable income fell 0.6 percent and 0.1 percent, respectively, in September. Personal income was unchanged last month following a 0.1 percent increase in August.

Personal saving in September totaled 3.3 percent of disposable personal income, up from 2.8 percent the prior month.

To aid growth, Federal Reserve policymakers have slashed interest rates to almost zero and have said they anticipate keeping rates low for a prolonged period of time.