WASHINGTON (October 29, 2012)--Consumers increased their spending in September at twice the rate their income rose, a sign of confidence in the economy, the U.S. Commerce Department said Monday.
The Commerce Department said consumer spending increased 0.8 percent in September, 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.
A pickup in consumer spending helped lift economic growth in the July-September quarter to a still-modest 2 percent annual rate.
The economy had grown at a 1.3 percent rate in the April-June period.
The slight acceleration in growth was seen as encouraging, but economists are still worried that the economy is stuck in a slow-growth rut.