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 that consumer spending, which accounts for more than 66% of US economic activity, jumped 1.0% last month. The increase, which also included a boost from higher household spending on utilities, was the largest since August 2009. Consumer spending increased by an unrevised 0.1% in August. Economists polled by Reuters had forecast consumer spending increasing 0.8% in September. The data was included in last Friday’s third-quarter GDP report, which showed that growth in consumer spending growth slowed to a 2.4% annualised rate after a robust 3.3% growth pace in the second quarter. The moderation in consumption was offset by a rise in inventory investment, business spending on equipment and a drop in imports, which left the econ...
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