WASHINGTON, Oct. 30 (Xinhua) -- U.S. consumer spending rose to an eight-year high in September, confirming the strong economic growth in the third quarter of the year, the U.S. Commerce Department reported on Monday.
Personal spending rose one percent in September from the previous month, the biggest monthly gain since August 2009, the department said. When adjusted for inflation, personal spending edged up 0.6 percent last month.
Meanwhile, personal income rose 0.4 percent in September after increasing 0.2 percent in August.
The price index for the personal consumption expenditure (PCE), a gauge for the inflation level preferred by the U.S. Federal Reserve, increased 1.6 percent in September from a year earlier.
The core PCE price index, excluding volatile food and energy, increased 1.3 percent from a year ago, still below the central bank's target of two percent.
As consumer spending is the key driver of the U.S. economy, the upbeat consumer spending data in September confirmed the solid economic growth in the third quarter of the year.
The U.S. economy grew at an annual rate of three percent in the third quarter of the year, slightly lower than the 3.1 percent in the previous quarter, the Commerce Department reported last week.
The Federal Reserve is expected to keep interest rates unchanged this week after wrapping up the two-day policy meeting on Wednesday. Many Fed officials have signaled that a further rate hike in December is likely to be warranted if the U.S. economic outlook remains broadly unchanged.
