Consumer spending in the U.S. climbed in October at the same pace as incomes, showing households are staying within their means as the holiday-shopping season begins.
Expenditures increased 0.2 percent last month after being little changed in September, Commerce Department figures showed today in Washington. The median forecast of 76 economists in a Bloomberg survey called for a 0.3 percent gain. Incomes also rose 0.2 percent, less than projected.
Without bigger wage gains, concern about taking on too much debt could potentially put a lid on how fast consumer spending can accelerate in the final three months of the year. Continued progress in the labor market and relief at the gas pump may help some households find the means to spend as retailers such as Kirkland’s Inc. (KIRK) prepare for the holiday shopping season.