US Posts Largest Consumer Spending Gain Since 2009

The U.S. Commerce Department reports the highest consumer spending increase in more than eight years, largely due to households in Texas and Florida replacing storm-damaged property, such as damaged motor vehicles, reports CNBC. Underlying inflation remained subdued.

Consumer spending, which accounts for more than two-thirds of the U.S. economy, reported a 1 percent gain last month. That increase, in conjunction with growth in higher spending on household utilities, was the largest since August 2009.

While Hurricanes Harvey and Irma were cited as the drivers of the increased spending, the Commerce Department could not determine the total impact of the storms on consumer spending and personal income.