Economics
U.S. Consumer Spending Rose in October While Incomes Declined
- Americans see drop in federal supplemental jobless benefits
- Other data showed jobless claims rose for a second week
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U.S. household spending rose more than expected in October while incomes declined, indicating consumers may have less wherewithal to keep driving the economy amid a surging coronavirus and lack of fresh government aid.
Purchases increased 0.5% from the prior month, following a 1.2% gain in September, a Commerce Department report showed Wednesday. That compared with estimates for a 0.4% increase. Personal incomes dropped 0.7%, a larger decrease than forecast, owing in large part to a decline in government supplemental jobless benefits.