Consumers boosted their spending in September at the fastest pace in three months, while their incomes grew by a modest amount.
The Commerce Department says consumer spending increased 0.5%, a significant rebound from August when spending fell 0.1%. The increase was led by a 1.3% surge in spending on autos and other durable goods. Incomes increased 0.3% in September, slightly faster than the 0.2% gain in August.
The overall economy grew at a 2.9% rate in the July-September quarter, more than double the 1.4% increase in the second quarter. That acceleration in activity came even though growth in consumer spending slowed after a burst in the spring.
