US consumer spending solid in October

US consumer spending increased solidly in October, while inflation moderated, giving the economy a powerful boost at the start of the fourth quarter as it navigates a high interest rate environment.

Consumer spending, which accounts for more than two-thirds of US economic activity, jumped 0.8 per cent after an unrevised 0.6 per cent increase in September, the Commerce Department said on Thursday.

October's gain was in line with economists' expectations.

Spending last month was boosted by wage gains amid labor market resilience, one-time tax refunds in California, which saw some households receiving as much as $1,050 in stimulus checks, and cost of living adjustments for food stamp recipients.