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Heavy discounts lure US shoppers | Heavy discounts lure US shoppers |
(3 days later) | |
US consumers headed to the shops in November, pushing up spending by the largest amount in three-and-a-half years, official data has shown. | US consumers headed to the shops in November, pushing up spending by the largest amount in three-and-a-half years, official data has shown. |
The Commerce Department said that consumer spending rose 1.1% last month, nearly triple the October gain. | The Commerce Department said that consumer spending rose 1.1% last month, nearly triple the October gain. |
Heavy discounting by retailers and longer opening hours encouraged people to part with their cash, it said. | Heavy discounting by retailers and longer opening hours encouraged people to part with their cash, it said. |
The data suggests consumers are still spending despite a housing slump, tight credit and high energy costs. | The data suggests consumers are still spending despite a housing slump, tight credit and high energy costs. |
"Once again, it appears the demise of the US consumer has been exaggerated," said Marc Chandler, head of global foreign exchange strategy at Brown Brothers Harriman in New York. | "Once again, it appears the demise of the US consumer has been exaggerated," said Marc Chandler, head of global foreign exchange strategy at Brown Brothers Harriman in New York. |
The November rise was the biggest one-month jump since May 2004 and was significantly more than economists were expecting. | The November rise was the biggest one-month jump since May 2004 and was significantly more than economists were expecting. |
The Commerce Department's personal consumption expenditure price index, a key measure of inflation, rose 0.6%, the biggest gain since September 2005. | The Commerce Department's personal consumption expenditure price index, a key measure of inflation, rose 0.6%, the biggest gain since September 2005. |
However, the increase was almost entirely due to a surge in the price of petrol. Core prices, which strip out food and energy costs, went up by 0.2%. | |
The data also showed that personal incomes rose 0.4% from the previous month, less than economists were expecting. | The data also showed that personal incomes rose 0.4% from the previous month, less than economists were expecting. |
Consumer spending accounts for two-thirds of US economic activity. | Consumer spending accounts for two-thirds of US economic activity. |
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