U.S. consumer spending grew at fastest pace since 2009 in September as households in Texas and Florida replaced flood-damaged vehicles. Roselle Chen reports.
Americans boosted their spending by one percent in September. That's the biggest monthly gain in eight years. They bought mostly autos and other durable goods after hurricanes in Florida and Texas. Consumer spending accounts for 70 percent of economic activity in the United States. Bankrate's Mark Hamrick: (SOUNDBITE) MARK HAMRICK, WASHINGTON BUREAU CHIEF AND SENIOR ECONOMIC ANALYST, BANKRATE (ENGLISH) SAYING: "While the one percent gain that we saw was very strong, we have to remember that that isn't sustainable because it was related to flooding and hurricane spending. But we should have a relatively firm outlook for spending here in these final months of the year." Income growth was solid in September, rising by 0.4 percent as wages and salaries climbed. But savings fell to the lowest level since August 2008.