U.S. Economy: Consumer Spending Increased in December

Consumer spending in the U.S. rose more than forecast in December, giving the world’s largest economy a lift heading into 2011.

Purchases, which account for about 70 percent of the economy, increased 0.7 percent after climbing 0.3 percent the prior month, Commerce Department figures showed today in Washington. Another report showed businesses expanded in January at the fastest pace in two decades.