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A shopper walks down the busy shopping street of Broadway on December 13, 2011 in New York City.Spencer Platt

U.S. consumer spending rose less than expected in November as tepid income growth put a squeeze on households, according to a government report on Friday that suggested slowing momentum in demand.

The Commerce Department said consumer spending ticked up 0.1 per cent after rising by the same margin in October.

Economists polled by Reuters had expected spending, which accounts for two-thirds of U.S. economic activity, to rise 0.3 per cent last month.

When adjusted for inflation, spending rose 0.2 per cent last month after a similar gain in October. The government on Thursday revised down third-quarter consumer spending growth to a 1.7 per cent annual pace from 2.3 per cent because of a slump in spending at hospitals.

November's anemic consumer spending is unlikely to change views that economic growth in the fourth quarter could top a 3 per cent pace, accelerating from the July-September period's 1.8 per cent rate.

Income ticked up 0.1 per cent last month, the weakest reading since August, after increasing 0.4 per cent in October. Last month's increase was below economists' expectations for a 0.2 per cent rise.

Taking inflation into account, disposable income was flat after rising 0.3 per cent in October.

The saving rate dipped to 3.5 per cent last month from 3.6 per cent in October. Savings slowed to annual rate of $400.9-billion (U.S.) from $419.1-billion the prior month.

The report showed subsiding inflation pressures, which should help to support spending.

A price index for personal spending was flat last month after falling 0.1 per cent in October. In the 12 months through November, the PCE index was up 2.5 per cent, the smallest rise since April. That followed a 2.7 per cent increase in October.

A core inflation measure, which strips out food and energy costs, edged up 0.1 per cent last month after a similar gain in October. In the 12 months through November, core PCE rose 1.7 per cent after increasing 1.7 per cent in September.

The Federal Reserve would like this measure close to 2 per cent.

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