Consumer spending rose 2% in December.

New-car financing deals and a brisk Christmas shopping season helped to account for the biggest monthly rise in consumer spending in more than a decade, the Commerce Department reported. The department also said that personal income posted a 1.4% gain in December. The reports suggest that consumers are continuing to spend more than they make--increasing their debt and drawing down savings to the lowest levels since before the Korean War. Analysts said the news dispelled fears that consumer spending was on the verge of a sharp decline and brightened the outlook for economic growth in the months ahead.