US consumers slowed their spending in September, even as overall income grew at a solid pace for the second straight month.
The Commerce Department says consumer spending rose 0.2 per cent in September, after a 0.3 per cent gain the previous month.
Americans cut spending on long-lasting manufactured goods by 1.3 per cent. That partly reflected a drop in car sales.
Income rose 0.5 per cent in September, matching the August gain. The increases in both months were the strongest since February. September's gain was helped by the end of government furloughs, which had reduced federal pay in the previous two months.
The gain in income and the slowdown in spending meant consumers saved 4.9 per cent of their after-tax income, up from 4.7 per cent in August.
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