US consumer spending expands at solid 0.6 per cent pace in Nov.; income growth up 0.4 per cent
Posted December 23, 2014 10:06 am.
This article is more than 5 years old.
WASHINGTON – U.S. consumer spending rose at the fastest pace in three months in November, while income posted the best gain in five months — both encouraging signs for economic growth.
The Commerce Department says consumer spending increased 0.6 per cent in November, double the 0.3 per cent October gain and the best showing since August.
Income, helped by a surge of hiring in November, rose 0.4 per cent after a 0.3 per cent October rise. It was the best showing since a similar rise in June.
Consumer spending is closely watched because it accounts for about 70 per cent of economic activity. The government revised higher spending in each month beginning in July. Those revisions contributed to a boost in overall growth to a sizzling 5 per cent rate in the third quarter.
