Consumer spending up weak 0.1 percent in October
WASHINGTON (AP) — Consumer spending posted a modest increase for a second straight month in October, while personal income rebounded after a sluggish September.
The Commerce Department says spending edged up 0.1 percent in October after a similar tiny gain in September.
Incomes jumped 0.4 percent in October, double the 0.2 percent rise in September. Wages and salaries rose by 0.6 percent. That was the strongest wage gain in five months and a reflection of the big surge in hiring that occurred last month.
The second straight month of spending weakness could signal trouble, given that consumer spending accounts for 70 percent of economic activity. However, economists are counting on the strong labor market to bolster the incomes needed to fuel spending in the months ahead.