Consumer spending in US beats forecast as petrol prices drop

Washington

CONSUMER spending rose more than forecast in November as incomes increased and petrol prices dropped, indicating the biggest part of the US economy is strengthening as the year ends.

Household purchases climbed 0.6 per cent, the most in three months, after a 0.3 per cent October gain that was larger than previously estimated, Commerce Department figures showed on Tuesday in Washington. The median forecast of 76 economists in a Bloomberg survey called for a 0.5 per cent rise. Incomes advanced 0.4 per cent, the most since June, and the savings rate dropped.

Americans are shopping for clothing, electronics and cars as surging employment and the lowest petrol costs since 2009 bolster confidence and expand buying power. The improving outlook for household spending, whi…