US consumer spending rises in August

Data today showed that consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.8% in August versus 0.1% in July, purchases of goods rose 1.2% in August and spending on services, which account for the bulk of consumer spending, rose 0.6% in August .

The core PCE price index, which excludes the volatile food and energy components, rose 0.3% in August, and on an annualized basis the core PCE price index rose 3.6% in the twelve months through August. Personal income rose 0.2% in August after rising 1.1% in July, wages rose 0.5% in August while the saving rate fell to 9.4% in August versus 10.1% in July, and real consumer spending rose 0.4% in August after declining by 0.4% in August. 0.5% in July.