U.S. consumer spending jumped 0.7 percent in October, helped by a rebound in auto sales, a Commerce Department report released Wednesday showed. The surge in household expenditures, a key driver of economic activity, rebounded from a 0.6 percent drop in September, according the Commerce Department. The report highlighted volatility from the government auto program that incentivized trading in older cars for newer, more fuel-efficient models, which increased auto sales until the program"s expiration in August. This resulted in a sharp fall in consumer spending in September, followed by October"s rebound. The data also showed personal incomes grew 0.2 percent and a 0.4 percent increase in disposable income. Spending was shown to have increased four straight months before the fall in September. The October data showed the savings rate fell slightly to 4.4 percent from 4.6 percent a month earlier. A separate report showed orders for durable manufactured goods fell 0.6 percent in October, dragged down by a decrease in defense aircraft and other transportation goods, which can show volatility. Excluding defense, new orders for durable goods -- which are expected to last at least three years-rose 0.4 percent.
