Consumer Spending Up in October: Holiday Season Is Expected to Be Strong CONSUMING PRACTICES
Consumer spending rebounded in October, n possible sign that Americans are ready to spend during the Christmas season after a summer lull.</br></br>The Commerce Department reported yesterday that personal consump-. tion spending rose by 0,5 percent last month, following a lackluster 0.1 percent advance in September.</br></br>The bigger-than-expected increase translated into a rise of $27.5 billion at an annual rate. The bulk of that gainÛÓ $20.7 billionÛÓoccurred in purchases of services, led by increased spending to pay for home insurance, telephone bills, recreation and accountant fees. Economists are closely watching consumer spending for signs that the economy may regain some vigor after a slow July-September quarter. At that time, gross domestic product advanced at only a 2 percent annual rate, far below the strong 4.7 percent page during the second quarter.	/</br></br>Spending by consumers fuels two-thirds of national economic activity, and most econoifiists who look for a stronger fourth quarter anticipate brisker shopping in the vital holiday</br></br>Wall Street has been pushed to re-, cord llighs because of the summer economic slowdown, believing that the: Federal Reserve will not need to raise interest rates to dampen an overheated economy.