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 percent last month. It was the biggest increase since a similar gain in March and was three times faster than the 0.2 percent September performance. Incomes, which provide the fuel for spending, were up 0.5 percent in October, a significant pickup from a 0.2 percent September gain.
A key gauge of inflation tied to consumer spending posted a 2 percent rise in October compared to a year ago, hitting the 2 percent annual target for inflation set by the Federal Reserve.