Consumer spending climbs 0.8% on higher incomes
A Monday report by the Commerce Deptartment showed that consumer spending in the U.S. for September rose more than forecast as household incomes climbed.
Household purchases increased 0.8%, the most since February and topping the 0.6% gain expected by Bloomberg. The September rise followed a 0.5% advance in August.
Incomes rose 0.4%, the most since March.
The economy expanded at a 2% annual pace in the third quarter, boosted by the uptick in household purchases.
“We have some positive momentum that we could gradually build on over time,” Scott Brown, chief economist at Raymond James & Associates, told Bloomberg.
Retail sales in September and August had the best back-to-back showing since late 2010.