Consumer spending rise 0.6 percent in November in US
The US Commerce Department has said on Friday that consumer spending in the country has risen 0.6 percent in the month of November.
The US consumer spending had fallen 0.2 percent in October. The increase was the biggest recorded in more than three years indicating that the world's largest economy has begun to recover. Experts say that increased spending after the Hurricane Sandy struck the East Coast and higher personal incomes in the previous month helped revive total spending in the country.
According to estimates, the US economy grew faster than expected in the July-September quarter than previously estimated. Economists say that the government will increase its estimate of growth to 2.8 percent for the third quarter compared to 2.7 percent rate it estimated a month ago. The Commerce Department is expected to release the new report today.
There are concerns that the consumer and business spending might take a hit in this quarter due to the slowdown in spending during the Superstorm Sandy and slowdown before the new year due to the uncertainty surrounding the fiscal cliff situation, which might lead to automatic tax increases and spending cuts.