Personal Spending Gains Slightly in September

October 30, 2006 10:30 AM, EST

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onsumer personal spending rose 0.1% in September, while an inflation gauge preferred by the Federal Reserve rose 0.2%, the Commerce Department said Monday.

The increase in personal spending follows a 0.2% gain in August that was higher than initially reported.

Personal incomes rose 0.5%, the biggest gain in three months, following a 0.4% gain in August, Bloomberg said.

Meanwhile, the Federal Reserve’s preferred gauge of inflation rose 2.4% from last September, down from August’s 2.5% year-to-year increase, Bloomberg reported.

An increase in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.