Consumer Spending Sees Slight Uptick as Incomes Climb

Consumer spending in the U.S. climbed more than forecast in September as incomes grew, 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% of the economy, rose 0.8%, the most since February, after a 0.5% gain the prior month, a Commerce Department report showed today in Washington. The median estimate in a Bloomberg News survey of 71 economists called for a 0.6% rise. Incomes rose 0.4%, the most since March.
The economy expanded at a 2% annual pace in the third quarter, helped by a pickup in household purchases as an improving housing market boosted confidence. At the same time, growth remains limited and unemployment elevated, Federal Reserve policy makers said last week, one reason they maintained their plan to buy bonds and keep interest rates low.