Consumer Spending in U.S. Increases 0.8% as Incomes Climb – Bloomberg 10-30-12

The saving rate dropped to 3.3 percent, the lowest since November, indicates bigger gains in employment are required to sustain spending.

Stephen Stanley at Pierpont Securities said housing seems to have turned, but the drop in the saving rate indicates the gain in spending is not fully sustainable.

Mark Vitner at Wells Fargo Securities said Hurricane Sandy may subtract as much as 0.2 percent from Q4 GDP as spending drops on services such as restaurant meals, which cannot be made up.