US consumer spending up 0.4% in November
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US consumers spent and earned more in November, reflecting a rebound from the disruptions caused by superstorm Sandy.
The Commerce Department says consumer spending rose 0.4 per cent compared with October.
Personal income jumped 0.6 per cent, the biggest gain in 11 months.
Wages and salaries rose $US41.1 billion ($A39.4 billion) in November.
Sandy had reduced wages at an annual rate of $18.2 billion in October.
Spending had fallen 0.1 per cent in October compared with September.
With income rising faster than spending, the saving rate rose to 3.6 per cent of income in November, up from 3.4 per cent in October.
Economists remain concerned that income growth is too weak to support sustained increases in spending, especially at a time when Americans are worried about possible tax increases in the new year.
Meanwhile, US companies increased their orders for long-lasting manufactured goods in November, with a second consecutive monthly gain in a key category that reflects investment plans of businesses.
The Commerce Department said orders for durable goods rose a seasonally adjusted 0.7 per cent in November, compared to October, when orders had risen 1.1 percent.
Orders for core capital goods - considered a proxy for business investment - were up 2.7 per cent in November after a revised 3.2 per cent gain in October, which was the biggest increase in 10 months.
The two big gains came after a period of weakness in this category had raised concerns about flagging business investment, a driving force in this recovery.
The gains were widespread in November, with only demand for commercial aircraft showing a big decline.