US consumer spending hike gives more hope to investors
US consumer spending rose the highest since March giving hope to investors who fear the world’s biggest economy could be slipping back into recession.
Retail sales hike by 0.5pc last month in line with analysts’ expectations.
Consumer spending accounts for two thirds of US economic activity.
The figures were boosted by petrol sales reflecting higher fuel costs.
The weakest sectors were department store sales and sports goods.
However, one month’s gain is unlikely to have a long-term effect on nervy stock markets.
Worldwide stock markets have been see-sawing this week on continued uncertainty about euro debt and a new recession.