Consumer spending solidly up in December

Washington

CONSUMER spending in the United States rose solidly in December as households bought motor vehicles and a range of services amid rising wages, pointing to sustained domestic demand that could spur faster economic growth in early 2017.

There are also signs of inflation steadily firming. The strengthening economy, rising price pressures and a tightening labour market could allow the Federal Reserve to lift interest rates at least three times this year.

The Commerce Department said on Monday that consumer spending, which accounts for more than two-thirds of US economic activity, increased 0.5 per cent after an unr…