WASHINGTON — U.S. consumer spending rebounded in November after a weak showing in October, while a key inflation gauge posted the fastest year-over-year increase in 11 months.
The Commerce Department says consumer spending increased 0.3 per cent in November after an essentially flat reading in October and a 0.2 per cent gain in September. Personal income rose a solid 0.3 per cent in November, reflecting solid gains in wages and salaries, after a 0.4 per cent October increase.
Economists are predicting that further improvement in the job market will support consumer spending in coming months.
A key inflation gauge was up 0.4 per cent in November compared with a year ago, the biggest year-over-year jump since last December. Inflation is being closely watched by the Federal Reserve to determine the pace for hiking interest rates.
Martin Crutsinger, The Associated Press