WASHINGTON (AP) — Consumers boosted their spending by 1 percent in September, the biggest monthly gain in eight years. The surge was led by strong sales of autos and other durable goods.
The Commerce Department says the sizable jump in consumer spending was up from a tiny 0.1 percent gain in August and was the best showing since an increase of 1.3 percent in August 2009. Income growth was also solid in September, rising by 0.4 percent as wages and salaries climbed.
A key inflation gauge closely followed by the Federal Reserve showed consumer prices rose 1.6 percent in September compared to a year ago, up from readings of just 1.4 percent the past three months. The Fed is not expected to raise interest rates this week but could move in December.
– by AP Reporter Martin Crutsinger
