News

Actions

US consumer spending records weakest gain in 8 months

MONEY
Posted at 9:18 AM, Oct 30, 2015
and last updated 2015-10-30 09:18:00-04

WASHINGTON -- Consumer spending cooled in September, posting the smallest gain in eight months. Income growth inched up by the smallest amount in four months.

The Commerce Department says spending rose 0.1 percent in September, the weakest showing since spending fell in January when harsh winter weather kept shoppers from stores.

Income increased 0.1 percent, with wages and salaries flat following two months of big gains.

Consumer spending is closely watched because it accounts for 70 percent of economic activity.

The overall economy slowed sharply in the July-September quarter. But that was mainly because businesses trimmed their stockpiles. Consumer spending was solid. Economists expect consumer spending to remain strong for the rest of this year, helping support a rebound in overall growth.