Purchases increased 0.6 percent, matching the
median estimate of 81 economists surveyed by Bloomberg News, after a 0.2
percent gain the prior month, Commerce Department figures showed today
in Washington. Incomes rose less than projected, sending the savings
rate down to the lowest level in almost four years.

A pickup in consumer spending helped propel the
economy through the third quarter while policy makers from President
Barack Obama to Federal Reserve officials moved to take additional
action to spur growth and hiring. Without a pickup in wages, households
may be unable to maintain gains in purchases.

“Given the state of consumer sentiment and the
savings rate, we should see moderate spending, at best, going forward,”
said Sean Incremona, a senior economist at 4Cast Inc. in New York who
correctly forecast the increase in purchases. “The savings rate is just
one of those warning signs that says we’re not pulling ourselves out
vigorously, so the economy still has a lot of vulnerability.”

Stock-index futures held earlier losses after the
report as investors awaited the outcome of Europe’s efforts to raise
money for its enhanced bailout fund. The contract on the Standard&
Poor’s 500 Index expiring in December fell 0.6 percent to 1,275 at 8:47
a.m. in New York. Treasury securities rose, sending the yield on the
benchmark 10-year note down to 2.34 percent from 2.40 percent late
yesterday.