Consumer spending up 0.8% in September; 3rd straight monthly gain
- Share via
WASHINGTON -- Consumer spending rose 0.8% in September, the third straight monthly gain and the biggest increase since February, the Commerce Department said Monday.
Personal consumption expenditures increased $87.9 billion last month after increasing a revised $59.9 billion, or 0.5%, in August. Consumer spending has been up each month since coming in flat in June following a decrease of 0.2% the month before.
September’s figure came in above analyst expectations of an increase of 0.6%.
“This means the fiscal cliff is not worrying consumers at this point like it is the business sector,” said Chris Rupkey, chief financial economist for the Bank of Tokyo-Mitsubishi in New York, noting business investment spending was down in Friday’s report on third-quarter economic growth.
“The good news is that capital spending will resume if consumers keep buying at a moderate pace,” he said.
Personal income also increased in September, up 0.4% after rising just 0.1% in August. And the personal savings rate dropped to 3.3% from 3.7% in August.
Inflation remained largely in check, rising 0.4% in September and up 1.7% compared with a year earlier. The Federal Reserve wants to keep inflation below 2% annually.
ALSO:
U.S. notches 2% GDP growth in third quarter
Hurricane Sandy leaves Washington, D.C., drenched and desolate
Higher prices push up consumer spending at the expense of savings
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
