Consumer spending rebounded in September
WASHINGTON — Consumers boosted their spending in September at the fastest pace in three months, while their incomes grew by a modest amount.
Consumer spending increased 0.5 per cent, a significant rebound from August when spending fell 0.1 per cent, the Commerce Department said Monday. The increase was led by a 1.3 per cent surge in spending on autos and other durable goods. Incomes increased 0.3 per cent in September, slightly faster than the 0.2 per cent gain in August.
The overall economy grew at a 2.9 per cent rate in the July-September quarter, more than double the 1.4 per cent increase in the second quarter. That acceleration in activity came even though growth in consumer spending slowed after a burst in the spring. But the latest figure indicates that the quarter ended on a positive note, with solid spending momentum heading into the end of the year
Economists believe solid gains in employment will help fuel consumer spending in the coming months.