Consumers boosted their spending in September at the fastest pace in seven months, while their incomes rose by the largest amount in nine months. Both are good signs for future economic growth.
The Commerce Department says consumer spending rose a sharp 0.6 per cent last month. It was the biggest increase since a similar gain in March and was three times faster than the 0.2 per cent September performance. Incomes, which provide the fuel for spending, were up 0.5 per cent in October, a significant pickup from a 0.2 per cent September gain.
A key gauge of inflation tied to consumer spending posted a 2 per cent rise in October compared to a year ago, hitting the 2 per cent annual target for inflation set by the Federal Reserve.
