FILE - In this Nov. 29, 2019, file photo shoppers carry bags as they cross a street in San Francisco. Black Friday kicks off the start of the holiday shopping season. On Friday, Dec. 20, the Commerce Department issues its November report on consumer spending, which accounts for roughly 70 percent of U.S. economic activity. (AP Photo/Jeff Chiu, File)

US consumer spending up 0.4% in November, best since July

December 20, 2019 - 10:26 am

WASHINGTON (AP) — Americans increased their spending in November at the fastest pace in four months, and income growth rebounded to its strongest gain since August.

The Commerce Department said Friday that consumer spending rose at a 0.4% annual rate last month, led by a jump in spending on durable goods like autos. It was up from a more modest annual gain of 0.3% in October, and it was the best showing since July.

Incomes rose 0.5% in November after a weak 0.1% reading in October, reflecting a surge in hiring last month in which employers added 266,000 jobs, the most since January.

Economists are expecting consumer spending, which accounts for about 70% of economic activity, 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 October-December quarter, similar to the 2.1% gain of the third quarter.

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