U.S. consumer spending increased solidly in October, suggesting that the economy maintained its strong pace of growth early in the fourth quarter.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.4% last month after an upwardly revised 0.6% advance in September, the Commerce Department's Bureau of Economic Analysis reported on Wednesday.

Economists polled by Reuters had forecast consumer spending gaining 0.3% after a previously reported 0.5% increase in September.

The Atlanta Federal Reserve is currently estimating gross domestic product rising at a 2.6% annualized rate this quarter. The economy grew at a 2.8% pace in the July-September quarter.

Consumption is being largely underpinned by low layoffs, with additional help from strong household balance sheets thanks to a stock market rally and high home prices.

Household savings also remain lofty. Economists are generally anticipating a fairly decent holiday shopping season, though still-high prices are squeezing budgets.