US recovery accelerates on spending, labor market growth

The US economy showed broad-based signs of acceleration towards the end of the year, with consumers increasing spending, companies stepping up investment and unemployment demands falling to historically low levels.

Household consumption rose 1.3% in October from a month earlier, while personal income increased by 0.5% last month, the Ministry of Trade said on Wednesday. Consumers benefit from a strong labor market. And they spend at a higher rate than inflation, which recently reached its highest level in three decades.