US consumer spending rises 0.6 percent in November
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.