Applications for US jobless aid jump to 313,000; consumer spending up

WASHINGTON (AP) -- The number of people seeking U.S. unemployment benefits jumped last week, pushing total applications above 300,000 for the first time in nearly three months. Meanwhile, consumers spent modestly more in October, a slight improvement after no gain at all in the previous month. <br /> <br /> JOBLESS AID APPLICATIONS<br /> <br /> Weekly applications rose 21,000 to a seasonally adjusted 313,000, the Labor Department said Wednesday. That's the highest level since the first week of September. The four-week average, a less volatile measure, rose 6,250 to 294,000.<br /> <br /> The increase is unlikely to raise concerns about the broader health of the job market. At least some of the rise occurred because of seasonal layoffs in businesses affected by the cold weather, such as construction. The department seeks to control for such seasonal factors but doesn't always do so perfectly.<br /> <br /> Applications had been under 300,000 for 10 straight weeks, an unusually low level that indicates companies are laying off fewer workers.<br /> <br /> Even with last week's increase, the overall level of applications is well below where it was 12 months ago. The four week average has tumbled 12.2 percent in the past year, and isn't that far from a 14-year low of 279,000 reached last month<br /> <br /> "Though we have seen increases over the past three weeks in the four-week average, the trend in claims remains relatively low," Derek Lindsey, an economist at BNP Paribas, said in a note to clients.<br /> <br /> CONSUMER SPENDING UP<br /> <br /> U.S. consumers spent modestly more in October, a slight improvement after no gain at all in the previous month.<br /> <br /> The Commerce Department said Wednesday that consumer spending rose 0.2 percent last month, while September was revised from a decline to a flat reading. Income grew 0.2 percent in October.<br /> <br /> Spending is closely watched because it accounts for 70 percent of economic activity. Solid job gains this year are helping to lift spending, which is bolstering the overall economy.<br /> <br /> The U.S. economy grew at a solid 3.9 percent rate in the July-September quarter. Economists expect growth of around 2.5 percent in the current quarter, and they believe 2015 will bring further spending gains and growth of around 3 percent.<br /> <br /> The rise in spending reflected a 0.2 percent increase in spending on non-durable goods such as clothing and a 0.3 percent rise in spending on services such as utility payments and rent. Spending on durable goods such as autos fell 0.2 percent in October.<br /> <br /> The small rise in spending and income left the saving rate unchanged at 5 percent of after-tax income.<br /> <br /> Inflation remained a no-show with a price gauge tied to spending rising by just 1.4 percent over the past months, well below the 2 percent target for inflation favored by the Federal Reserve.<br /> <br />