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US Consumer Spending Exceeds Expectations

The U.S. Department of Commerce released a statement Wednesday that showed  consumer spending increased by .7% in October with comparison to the previous month.

The rise in spending raises hope that recovery is in progress for the economy despite the country's high unemployment. 

President of ClearView Economics Ken Mayland told BBC news that the increase in consumer spending is promising.

"Don't count consumers out, they are making a contribution to the recovery," he said.

BBC News reported consumer expenses make up more than two-thirds of the U.S. economy.  The Commerce Department data showed that consumers made greater expenses on both durable and nondurable goods in October.

Consumers spent more money on cars, household appliances, clothes, and food despite the highest rate of unemployment in October since April 1983. 

Tim Ghriskey, cofounder of Solaris Asset Management, said the increased spending is necessary for an economic upturn.

"Certainly everybody is looking for the consumer to begin to step up here a little bit in the economy," he said.  "This is very positive data."

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