U.S. consumer spending is growing solidly, and the economy remains strong

U.S. consumer spending rose solidly in October, indicating that the economy maintained a strong pace of growth at the start of the fourth quarter, but progress in reducing inflation over the past few months appears to have stalled. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.4 percent last month, compared with an upwardly revised 0.6 percent increase in September, Commerce Department data showed on Wednesday. Consumption has been largely supported by low unemployment, with strong household balance sheets from a rebound in the stock market and high home prices playing an additional role. In addition, household savings remain high. Economists widely expect the holiday shopping season to perform quite well despite still-high prices.