US consumer spending surged 1 per cent in September
WASHINGTON — Consumers boosted their spending by 1 per cent in September, the biggest gain in eight years. The surge was fueled by robust demand across sectors, especially autos in the wake of recent hurricanes.
The sharp jump in consumer spending was up from a tiny 0.1 per cent gain in August and was the best showing since an increase of 1.3 per cent in August 2009, the Commerce Department reported Monday. Income growth was also solid in September, rising by 0.4 per cent as wages and salaries climbed.
Consumer spending is closely monitored because it accounts for 70 per cent of economic activity. The latest result suggests that Americans were feeling increasingly confident about the economy heading into the final quarter of the year.
That should support solid growth in the fourth quarter. The overall economy, as measured by the gross domestic product, grew at a solid 3 per cent annual rate in the July-September quarter, despite the devastation from two hurricanes.