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U.S. consumer spending rises; income falls in October

FILE PHOTO: Servers package food at a table at a pop up restaurant set up in Times Square for 'Taste of Times Square Week' during the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., October 23, 2020. REUTERS/Carlo Allegri

WASHINGTON (Reuters) - U.S. consumer spending increased solidly in October, but the momentum is likely to slow as surging COVID-19 infections and the loss of a weekly unemployment subsidy for millions of Americans weigh on income.

Consumer spending, which accounts for more than two thirds of U.S. economic activity, rose 0.5% last month after increasing 1.2% in September. Personal income fell 0.7%, reversing a 0.7% gain in September. Economists polled by Reuters had forecast consumer spending rising 0.4% and income unchanged in October.

Reporting by Lucia Mutikani

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