Consumer spending in the US rose at its fastest pace in five months in December, boosted by demand in the run-up to Christmas. Personal spending rose 0.9pc in December from November, while personal income edged up 0.4pc, the Commerce Department said. The figures were higher than expected and have been welcomed as a positive sign for the US as consumer spending drives two thirds of the economy. Economists had forecast that income would rise 0.2pc and spending 0.7pc.
The rise in spending in December was led by durable goods, which surged 6.1pc due to demand for cars as dealers offered zero per cent financing to lure in buyers. The personal savings rate - personal saving as a percentage of disposable personal income - slipped to 4.1pc in December from 4.5pc in November. //www.fxcentre.com