U.S. consumer spending beats expectations in September

FILE PHOTO: A young Ultra-Orthodox Jewish girl shops in a toy store, during the outbreak of coronavirus disease (COVID-19) in the Borough Park section of Brooklyn, New York, U.S., October 13, 2020. REUTERS/Brendan McDermid

WASHINGTON (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.

Reporting by Lucia Mutikani; Editing by David Goodman