Consumer spending climbs 0.5% in August - MarketWatch

Consumer spending climbs 0.5% in August - MarketWatch

 Consumer spending in the U.S. rose in August by the fasted amount in six months, according to the latest government data. Spending jumped 0.5% last month on a seasonally adjusted basis, the Commerce Department said Friday. Personal income, however, rose a much smaller 0.1% and the U.S. savings rate fell to 3.7% from 4.1%. That's the biggest one-month decline in a year. Economists surveyed by MarketWatch had forecast a 0.5% increase in consumer spending, largely because of sharply higher gas prices in August. They also forecast a 0.2% rise in personal income. Since spending rose faster than income, the savings rate fell. Also, inflation as gauged by the core PCE price index rose a scant 0.1% in August. Over the past 12 months the core PCE has risen 1.6%, within the Federal Reserve's preferred zero to 2.0% range. In July, spending was unchanged at a 0.4% increase. The rise in income, however, was reduced to 0.1% from 0.3%