Consumer spending rises in November

WASHINGTON -- Early-bird holiday shopping helped to lift consumer spending in November by the largest amount in four months. That, plus solid income growth, underscored economists' belief that consumers will keep spending, supporting the economic recovery.

Consumer spending rose by 0.5 percent in November from the previous month, led by a burst of buying of big-ticket goods, such as cars and appliances, the Commerce Department reported Monday. The increase -- the biggest since July -- came after a 0.4 percent advance in October.

Americans' incomes, including wages, interest and government benefits, climbed 0.3 percent in November for the fourth month in a row.

Consumers, whose spending accounts for two-thirds of all economic activity in the United States, have been the main force carrying the economy all year.

But for the nation's retailers, it remains to be seen just how much cheer they'll get from this holiday shopping season.

Retailers had a good start to the season with better-than-expected sales during the Thanksgiving weekend. But subsequent sales have been weak. Retailers are offering heavy discounts to lure buyers and are keeping their fingers crossed that last-minute shoppers will come to the rescue.

And heavy markdowns might take a toll on retailers' earnings.