WASHINGTON Spending by U.S. consumers climbed in November as Americans pushed aside the threat of higher taxes next year, buying gifts for the holidays and making up for shopping lost to superstorm Sandy.
Purchases increased 0.4 percent last month after a 0.1 percent drop in October that was smaller than previously estimated, Commerce Department figures showed Friday in Washington. The gain matched the median forecast of 80 economists surveyed by Bloomberg.
Incomes rebounded after being depressed in October by lost wages because of Sandy.
A better showing by consumers, whose spending makes up 70 percent of the economy, will help sustain the expansion as businesses rein in investment and global buyers temper demand. At the same time, households are set to be challenged by more than $600 billion in tax increases and federal spending cuts due to be put in place for January without action from Congress.
Read tomorrow's Arkansas Democrat-Gazette for full details.