US consumer spending rose 0.8 percent in September |
| The Associated Press - Oct 29, 2012 |
Americans increased their spending in September at twice the rate that their income grew, a sign of confidence in the economy. Still, consumers made up the difference by saving less for a third straight month, a troubling trend.
The Commerce Department said Monday that consumer spending increased 0.8 percent in September from August. That followed a 0.5 percent gain in August and was the best showing since February.
Personal income rose 0.4 percent, an improvement from a slight 0.1 percent gain in August and the best gain since March. However, after adjusting for inflation and taxes, income was flat in September. That followed a 0.3 percent decline in August.
Consumer spending is important because it drives nearly 70 percent of economic activity.
A pickup in consumer spending helped lift economic growth in the July-September quarter to a 2 percent annual rate. While that is faster than the 1.3 percent rate in the April-June period, it's still too weak to create enough jobs to rapidly lower the unemployment rate.
Read Full Article from The Associated Press
- Posted: 2012-10-29 10:47:18
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