Consumer spending rose by 0.1% in October in United States

The consumer spending, which is equivalent to more than two-thirds of economic activity in United States, rose 0.1% last month, while personal income rose 0.4%, reported yesterday the Department of Commerce.

Most analysts expected that spending rose by 0.3% and income 0.2% the month past.

The increase in revenues at rate higher than costs resulted in an increase of 3.5 per cent in the savings rate of disposable income, i.e. what remains in the hands of consumers when they pay taxes.

In September, the savings rate was 3.3%.

This given reversed the trend recorded in the previous quarter when consumer spending grew at rate higher than income, leading to that economists worry by a collapse of spending and a weakening of the recovery economic.

Price index cost of consumption, one of the three u000ameasures of inflation in the United States.UU., fell in October, a 0.1% and in the previous 12 months inflation was 2.7 per cent.

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