Americans increased their spending in September at twice the rate their income rose, a sign of confidence in the economy.
The US Commerce Department said today that consumer spending increased 0.8% in September.
That followed a 0.5% gain in August and was the best showing since February.
Personal income rose 0.4%, up from a slight 0.1% gain in August and the best gain since March.
Consumer spending is important because it drives nearly 70% of US economic activity.
A pickup in consumer spending helped lift economic growth in the third quarter to a 2% annual rate. While that is faster than the 1.3% rate in the second quarter it is still too weak to create enough jobs to rapidly lower the unemployment rate.
The spending gains reflect in part rising consumer confidence. The University of Michigan said last week that its final consumer sentiment index for October had hit a five-year high.
Falling petrol prices and a slightly better job market were credited with lifting consumers' outlook.
With eight days until the election, the US economy is being kept afloat by a revitalised consumer and the early stages of a housing recovery. But the nation continues to struggle because businesses are reluctant to invest, and slower global growth has cut demand for American exports.
