WASHINGTON – U.S. consumers picked up spending by a modest amount in October, a slight improvement after no gain at all in the previous month.
Continue Reading Below
The Commerce Department says consumer spending rose 0.2 percent last month, while September was revised from a decline to a flat reading. Income grew 0.2 percent in October, matching the modest September gain.
Spending is closely watched because it accounts for 70 percent of economic activity. Solid job gains this year are helping to lift spending, which is giving a bolstering the overall economy.
Economic growth came in at a solid 3.9 percent in the July-September quarter. Economists are looking for growth of around 2.5 percent in the current quarter, and they believe 2015 will see further spending gains and growth of around 3 percent.