US consumers boosted their spending by 1% in September, the biggest monthly gain in eight years.
The surge was led by strong sales of autos and other durable goods, according to official data published on Monday (30 October).
The US Commerce Department said the appreciable jump in consumer spending was up from a tiny 0.1% gain in August, and was the best showing since an increase of 1.3% in August 2009.
Income growth was also solid in September, rising by 0.4% as wages and salaries climbed.
A key inflation gauge closely followed by the US Federal Reserve showed consumer prices rose 1.6% in September compared to a year ago.
That's up from readings of just 1.4% the past three months.
The Fed is not expected to raise interest rates this week but could move in December.
In response, the dollar was broadly flat against the euro, changing hands at €0.8618. However, the greenback rose against Canadian dollar and Swiss franc up 0.40% and 0.11% respectively, to change hands at CAD$1.2848 and CHF0.9989.
With Associated Press input.