Year-end cheer as Nov consumer spending beats forecasts

Washington

US consumer spending accelerated in November amid an increase in demand for recreational goods and utilities, but the strong pace of consumption is unlikely to be sustained as savings dropped to their lowest level in more than nine years.

The Commerce Department said on Friday consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.6 per cent last month after a downwardly revised 0.2 per cent increase in October.