Consumer Spending Gain Shows U.S. Is Weathering Global Slowdown

Household spending climbed more than forecast in August and the prior month was revised up, fueled by wage growth and indicating consumers will help the U.S. economy muddle through a global slowdown.

The 0.4 percent increase in purchases matched the July advance that was larger than previously reported, Commerce Department figures showed Monday. The median forecast of economists in a Bloomberg survey called for a 0.3 percent August increase. Employment gains helped wages climb an annualized 5 percent over the last three months, the most since January.