Spending Pickup May Not Be a Savings Grace
Author: Kelly Evans</br></br>U.S. consumers are loosening their purse strings just in time for the holiday season. But any joy may prove short-lived.</br></br>Consumer spending lately has been showing some resilience. Tuesday's revised report on gross domestic product showed spending rose at a 2.8% annualized rate in the third quarter, up from the 2.6% pace previously estimated. The fourth quarter is also off to a good start with October retail sales posting their biggest monthly gain in seven months</br></br>On Wednesday, the Commerce Department is expected to say consumer spending overall rose 0.5% in October from the prior month, more than double the September gain. Yet incomes are expected to rise by 0.4%.</br></br>What gives? Savings.