Wednesday, November 25, 2009

U.S. consumer spending rises, jobless claims tumble

WASHINGTON (Reuters) - U.S. consumer spending and housing sales rose more than expected in October while new claims for jobless benefits fell sharply last week, suggesting the economic recovery was gaining traction.

An unexpected decline in orders for long-lasting U.S. manufactured goods, however, tempered some of the optimism and was a reminder that recovery from the most brutal recession in 70 years would be gradual.

The Commerce Department on Wednesday reported that consumer spending, which normally accounts for over two-thirds of U.S. economic activity, increased 0.7 percent last month after falling 0.6 percent in September. That was above market expectations for a gain of 0.5 percent.



Entire story here:

http://www.reuters.com/article/newsOne/idUSTRE5AO26220091125

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