Heating demands see US consumer spending exceed forecasts in January

US consumer spending rose more than expected in January as outlays on services recorded their largest increase since late 2001, likely driven by demand for heating.

The Commerce Department said on yesterday consumer spending increased 0.4% after advancing by a revised 0.1% in December. Spending was previously reported to have gained 0.4% in December.

Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of US economic activity, edging up 0.1% in January.