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U.S. Consumption, Incomes Pick Up in Sign of Holiday Cheer

  • November figures show consumption continues to drive economy
  • Fed’s preferred gauge of core inflation remains muted
Pedestrians view a holiday window display at a department store in New York.
Photographer: Victor J. Blue/Bloomberg
Updated on

Americans’ spending picked up in November and income gains topped projections, offering hope for a solid holiday-shopping season and indicating household consumption will continue to be the economy’s main driver at year-end.

Purchases, which account for about two-thirds of the economy, rose 0.3% from the prior month after adjusting for inflation, following a 0.1% increase in October, Commerce Department data showed Friday. That exceeded the median estimate in a Bloomberg survey of economists, while the nominal spending gain of 0.4% matched forecasts.