THE COMMERCE DEPARTMENT SAYS 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.
