AND GOING...:

Consumer Spending Stronger Than Expected (Tim Ahmann, 12/01/04, Reuters)

U.S. consumer spending rose a sharper-than-expected 0.7 percent in October, showing the economy off to a solid fourth-quarter start despite a step-up in inflation, a government report showed on Wednesday.

"Looking pretty solid," said Kurt Karl, head of economic research at Swiss Re in New York. "I would say there is a very good holiday season coming up."

In addition to the strong spending figure, incomes rose 0.6 percent in October, the biggest increase since May and well ahead of September's 0.2 percent increase, the Commerce Department report showed. Wages, which account for over half of all personal income, gained 0.5 percent.