WASHINGTON (AP) – Americans increased their spending in November at the fastest pace in four months while income growth rebounded to the strongest gain since August.
The Commerce Department said Friday that consumer spending rose 0.4% last month, led by a big jump in spending on durable goods such as autos.
Incomes rose 0.5% in November after a weak 0.1% reading in October, reflecting a surge in hiring last month that saw 266,000 jobs added.
Economists are counting on consumer spending to remain solid in the final three months of the year to support continued moderate economic growth.
They are forecasting growth of around 2% in the current quarter.