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
Consumer Spending Jumps 0.8%
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. (Read more consumer spending stories.)

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