WASHINGTON – American consumers boosted their spending in September at the fastest pace in three months, while their incomes grew by a modest amount.
The Commerce Department says consumer spending increased 0.5 percent, a significant rebound from August when spending fell 0.1 percent. The increase was led by a 1.3 percent surge in spending on autos and other durable goods. Incomes increased 0.3 percent in September, slightly faster than the 0.2 percent gain in August.
The overall U.S. economy grew at a 2.9 percent rate in the July-September quarter, more than double the 1.4 percent increase in the second quarter. That acceleration in activity came even though growth in consumer spending slowed after a burst in the spring.
Economists believe solid gains in employment will translate into further spending gains in coming months.