U.S. consumer spending posted another solid gain in October and inflation continued to show signs of firming, buoying hopes of strong economic growth in the fourth quarter. The Commerce Department said personal consumption rose a seasonally adjusted 0.3 percent last month after a revised 0.7-percent jump in September.

U.S. durable goods orders rebounded strongly in October, surging past expectations amid increased demand for aircraft and other transportation machinery. The Commerce Department said orders for items meant to last three years increased $11bn, or 4.8 percent, to $239.4bn last month, following a downwardly revised 0.4 percent drop in September. Economists had predicted a 1.7 percent gain.

U.S. durable goods orders fell in September, confirming another weak quarter for business spending, but core capital goods showed some signs of a recovery. The Commerce Department said orders for items meant to last three years decreased $0.3bn, or 0.1 percent, to $227.3bn in September, following a 0.3 percent increase in August.

Prices paid by U.S. businesses for goods and services increased more than expected in September, economists said, amid other signs that inflationary pressures may be increasing. The Labor Department said its producer price index was up 0.3 percent on a seasonally adjusted basis compared with August. Economists surveyed by The Wall Street Journal had expected a 0.2 percent increase.