US government figures show that consumer spending surged by a stronger than anticipated 1.1% in November despite a housing slump and higher energy costs.
The Commerce Department report also showed that personal incomes rose 0.4%, a little weaker than forecast.
The report suggested that consumers are still spending confidently despite a prolonged housing slump, tighter credit and high energy costs.
A key inflation gauge in the report - known as the personal consumption expenditure price index - rose 0.6% while the core rate, which strips out volatile food and energy costs, increased 0.2%.
