US consumers loosen the Christmas purse strings

US consumer spending picked up in November as households loosened their purse strings at the start of the holiday shopping season, boosting prospects for fourth-quarter growth.

Spending rose by 0.3% last month after holding steady in October, according to data from the Commerce Department.

The release of the figures more than 12 hours ahead of schedule by the department’s Bureau of Economic Analysis marked a rare instance of market-sensitive government economic data becoming public early.

The November rise in consumer spending, which accounts for more than two-thirds of US economic activity, was a welcome sign for an economy that had down shifted in the third quarter.

While the October reading was revised downward from a previously reported 0.1% gain, spending in September was a bit stronger than earlier reported.

A tightening labour market has started to lift wages, underpinning spending.

In November, spending strengthened across the board, with outlays on long-lasting durable goods, non-durable items and services all rising.

Spending on pricey durable products, such as cars and washing machines, rose a healthy 0.7% in November.

Services spending, which has been lifted by rising health care costs, rose 0.2%.