Consumer Spending Jumps 0.8%
It's the best report in 7 months, but outpaces income growth
By Newser Editors and Wire Services
Posted Oct 29, 2012 8:44 AM CDT
In this Tuesday, July 10, 2012, photo, shoppers browse in Boston.   (AP Photo/Elise Amendola)

(Newser) – Americans increased their spending in September at twice the rate their income rose, a sign of confidence in the economy. The Commerce Department says consumer spending increased 0.8% in September, the best showing since February. Personal income rose 0.4%, an improvement from a slight 0.1% gain in August and the best gain since March.

A pickup in consumer spending helped lift economic growth in the July-September quarter to a still-modest 2% annual rate. The economy had grown at a 1.3% rate in the April-June period. The slight acceleration in growth was seen as encouraging, but economists are still worried that the US economy is stuck in a slow-growth rut.

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Showing 3 of 33 comments
Oct 29, 2012 11:30 AM CDT
"Americans increased their spending in September at twice the rate their income rose" Which means the new spending came from new debt. You do know how we got in this economic mess, don't you? The countdown starts to see how long it takes someone to post "Bush."
Oct 29, 2012 11:28 AM CDT
How is it compared to last year for the same time period? Couldn't this just be because it's close to holiday season?
Oct 29, 2012 11:04 AM CDT
The article fails to mention that a large part of the spending was done by the government.