Americans turned thriftier in October, spending less and saving more, according to fresh government data.

The slowdown in spending comes one month after consumers emptied their wallets and purses to buy new cars and other items. While consumers need to save more, economists also note that a sustained pullback in spending would result in slower U.S. growth. Consumer spending accounts for as much as 70 percent of all economic activity.

The Commerce Department said Wednesday consumer spending rose a modest 0.1 percent last month. Personal income rose even faster, up 0.4 percent, to mark the biggest increase since March. Economists surveyed by MarketWatch had forecast spending to rise by 0.3 percent and income by 0.2 percent. By contrast, spending increased a revised 0.7 percent in September, even though incomes rose only 0.1 percent.

The pattern of income and spending growth in October halts a recent trend. Consumers had been financing their purchases mainly by dipping into their savings. The savings rate fell to 4.1 percent in the third quarter compared to 5.1 percent in the second quarter, according to recently released government data.

Yet last month the personal savings rate rose to 3.5 percent of disposable income - the money left over after paying taxes - from 3.3 percent in September.

Despite slower spending in October, economists expect consumers to boost purchases over the holiday season and contribute to fourth-quarter growth that's likely to exceed the third-quarter pace.

"Spending should pick up in the holiday shopping season as consumers find good deals, and some people have a little extra disposable income in their pockets," said Chris Christopher, senior economist at IHS Global Insight.

The economy grew 2.0 percent last quarter - the fastest rate since the end of 2010 - largely because of a 2.3 percent jump in consumer spending. And spending rose even though inflation-adjusted income fell 1.7 percent.

In the long run, however, consumer spending usually matches up with growth in wages. Economists say the recent burst in spending probably cannot continue unless paychecks increase, as millions of Americans still carry high levels of debt.

Inflation, meanwhile, fell slightly based on the personal consumption expenditure price index. The index dropped 0.1 percent in October, putting its increase in the past 12 months at 2.7 percent.

The core PCE, which excludes volatile food and energy costs, rose 0.1 percent. The MarketWatch survey called for a 0.1 percent increase.

In the past year, core PCE inflation has risen a smaller 1.7 percent. The Federal Reserve uses core PCE as a tool to help determine whether to raise or lower interest rates, with the aim of keeping inflation at a rate of 2 percent or below.

Adjusted for inflation, personal consumption rose 0.1 percent last month while real disposable income increased 0.3 percent - the largest gain since May 2010.