Resilient US Consumers Spend Slightly More in August

WASHINGTON — Consumers spent a bit more in August than the previous month, a sign the economy is holding up even as inflation lifts prices for food, rent, and other essentials, according to an Associated Press report.

Americans boosted their spending at stores and for services such as haircuts by 0.4% in August, after it fell 0.2% in July, the Commerce Department said Friday. The government’s report also showed that an inflation gauge closely monitored by the Federal Reserve rose 0.3% last month, faster than July.

The figures suggest that the economy is showing some resilience despite sharply rising interest rates, violent swings in the stock market, and high inflation. On Thursday the government confirmed that the economy shrank in the first six months of the year.

Still, there were signs that rising prices are weighing on shoppers. Consumer spending, adjusted for inflation, rose at an annual rate of 2% in the April-June quarter. Yet July and August data indicate that spending is on track to slow to about 0.5% annual growth in the July-September quarter, economists said.

Read the full Associated Press report.

Source: https://rvbusiness.com/resilient-us-consumers-spend-slightly-more-in-august/