U.S. Consumer-Spending Gain Moderates as Incomes Increase

  • Purchases rose 0.3% in October after revised 0.7% jump
  • Data may add to Fed confidence economy ready for rate hike
Photographer: Simon Dawson/Bloomberg
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Personal spending increased at a more moderate pace in October after the biggest gain in five months, while faster income growth signaled demand will be sustained.

Purchases rose 0.3 percent after a 0.7 percent September advance that was stronger than first estimated, Commerce Department figures showed Wednesday. The median forecast in a Bloomberg survey called for a 0.5 percent advance in October. Incomes jumped 0.6 percent, the most since April.