U.S. household spending rose more than expected in October while incomes declined, indicatingconsumers may have less wherewithal to keep driving the economy amid a surging coronavirus and lack of fresh government aid.
Purchases increased 0.5 percent from the prior month, following a 1.2 percent gain in September, a Commerce Department report showed Wednesday. That compared with estimates for a 0.4 percent increase. Personal incomes dropped 0.7 percent, a larger decrease than forecast, owing in large part to a decline in government supplemental jobless benefits.
The report follows data earlier Wednesday showing applications for U.S. state unemployment benefits unexpectedly rose for a second straight week in the first back-to-back increase since July.
Click here to read the full report from Reade Pickert in Bloomberg.com.