49°
Baton Rouge, Louisiana
7 Day Forecast
Follow our weather team on social media

US consumer spending rises 0.6 percent in November

11 months 3 weeks 6 days ago Friday, December 22 2017 Dec 22, 2017 December 22, 2017 7:37 AM December 22, 2017 in News
Source: Associated Press
By: Associated Press

WASHINGTON- American consumers stepped up their spending last month, a good sign for the holiday shopping season.

The Commerce Department says consumer spending rose a sharp 0.6 percent from October, outpacing a 0.3 percent increase in personal income. As a result, the savings rate fell to 2.9 percent of after-tax income in November, lowest since November 2007.

The numbers bode well for the holidays and for the overall economy: Consumer spending accounts for about 70 percent of U.S. economic output.

The measure of inflation favored by the Federal Reserve remained subdued, rising 1.8 percent in November from a year ago. Inflation is running below the Fed's 2 percent annual target, but the central bank is still confident enough in the economy to have raised interest rates three times this year.

More News

Desktop News

Click to open Continuous News in a sidebar that updates in real-time.
Radar
7 Days