WASHINGTON (AP) – 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 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.