Consumer spending in the U.S. climbed more than forecast in September, a sign the biggest part of the economy was picking up as the quarter drew to a close.
Household purchases, which account for about 70 percent of gross domestic product, rose 0.8 percent, the most since February, after advancing 0.5 percent in August, a Commerce Department report showed today in Washington. The median estimate in a Bloomberg survey of 71 economists called for a 0.6 percent gain. Incomes climbed 0.4 percent, the most since March.
The acceleration in spending may help the worldâ€™s largest economy overcome a slowdown in exports and business investment as global growth slackens and concern mounts about the so-called fiscal cliff. At the same time, a drop in saving to finance purchases indicates bigger gains in employment are required to provide the income needed to sustain spending.
â€œThe strength in September gives consumer spending a good lift for the fourth quarter,â€ said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut. â€œThe housing market seems to have turned. Consumers are clearly feeling better and are going out and spending a bit more.â€
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