Consumer Spending Up 0.7 Percent: November Gain, Aided by Higher Incomes, Is Steepesi
ÐÊ Consumer spending rebounded 0.7 percent in November from its sharp fall a month earlier, the government reported yesterday, and analysts said itÛªs one of the bright spots in a slowing economy.</br></br>ÛÏIt suggests that while we have some weak areas in the economy, particularly in the manufacturing sector, that the consumer has not turned off completely,Û said David Jones, an economist with Aubrey G. Lanston & Co. in New York.</br></br>Consumer spending, which has been a major factor in the economic growth during the first nine months of the year, is watched closely as a barometer of economic health because it accounts for about two-thirds of the nationÛªs economic activity.</br></br>The Commerce Department also reported an 0.8 percent increase in personal incomes in November, but some analysts questioned whether income growth will soon begin to weaken and thus cause a decline in spending.</br></br>The report said consumer spending rose at a seasonally adjusted annual rate to $3.54 trillion, the steepest gain since a 1 percent jump last April.