U.S. consumer spending increased solidly in October, but the momentum is likely to slow as surging COVID-19 infections and the loss of a weekly unemployment subsidy for millions of Americans weigh on income.
Consumer spending, which accounts for more than two thirds of U.S. economic activity, rose 0.5% last month after increasing 1.2% in September. Personal income fell 0.7%, reversing a 0.7% gain in September.
Economists polled by Reuters had forecast consumer spending rising 0.4% and income unchanged in October.