US consumer spending rose 0.2 per cent in October, driving the personal saving rate into negative territory for the fifth straight month, while jobless claims fell last week, government reports showed today.
Personal income also rose in October, by 0.4 per cent - slightly less than the 0.5 per cent increase forecast by Wall Street, while inflation outside of food and energy was tamer than expected.
The commerce department said the personal saving rate, the percentage Americans sock away after spending, taxes and interest payments, was minus 0.7 despite a 0.3 per cent rise in disposable income.
A separate report by the US labour department showed the number of US workers making new jobless claims fell last week to below pre-hurricane levels.
Initial claims for state unemployment benefits dropped 17,000 to 320,000, largely in line with Wall Street forecasts.
Before the successive storms hit the US Gulf Coast, jobless claims figures had shown the US labour market stabilising.