Consumer Spending Up 0.5% in November
(WASHINGTON) -- U.S. consumer spending last month saw its biggest increase in five months, up 0.5 percent in November. It was the seventh straight month of increases for the year.
Retailers, and their holiday discounts, helped contribute to that jump, according to George Rosenbaum, an analyst for the retail research firm Leo J. Shapiro.
“We may have had an all-time record in the aggressiveness and timing of sales for the holidays,” said Rosenbaum, who added that buyers are likely to look for more in the weeks to come.
“We may have one of the best post-Christmas weeks -- or two weeks -- that we've ever had,” he added.
Spending on durable goods rose 1.9 percent last month. Personal income also rose, up 0.2 percent, according to the U.S. Commerce Department. The savings rate for disposable household income is now at a nine-month low of 4.2 percent.
The American economy is not out of the woods just yet, Rosenbaum cautioned. There continues to be pessimism about the economy, and many are worried about keeping their jobs.
“As far as the recession goes, we're making very, very gradual progress,” he concluded.
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