U.S. consumer spending beats expectations in September

Andrew Kelly | Reuters

U.S. consumer spending increased more than expected in September, but a resurgence in Covid-19 cases across the nation could slow spending in the fourth quarter.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 1.4% last month after gaining 1% in August, the Commerce Department said on Friday. Economists polled by Reuters had forecast consumer spending rising 1% in September.

Personal income rose by 0.9% in the month, exceeding expectations of a 0.4% increase. Income dropped 2.7% a month earlier.

This is a developing story. Please check back for updates.

—CNBC contributed to this report.