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Consumer Spending in U.S. Increases More Than Forecast

Consumer spending in the U.S. climbed more than forecast in December even as incomes stagnated, showing the economy needs to generate bigger gains in employment to boost the expansion.

Household purchases, which account for about 70 percent of the economy, rose 0.4 percent, after a 0.6 percent gain the prior month that was larger than previously estimated, Commerce Department figures showed today in Washington. The median projection of 81 economists in a Bloomberg survey called for a 0.2 percent rise. Incomes were unchanged, pushing the saving rate to the lowest level in almost a year.