Consumer spending sees growth at fastest clip since 2009

Washington

US CONSUMER spending recorded its biggest increase in more than eight years in September, likely as households in Texas and Florida replaced flood-damaged motor vehicles, but underlying inflation remained muted.

The Commerce Department said on Monday consumer spending, which accounts for more than two-thirds of US economic activity, jumped 1.0 per cent last month. The increase, which also included a boost from higher household spending on utilities, was the largest since August 2009.

Consumer spending rose by an unrevised 0.1 per cent in August. Economists polled by Reuters had forecast consumer spending increasing 0.8 per cent in Septemb…