Economics
U.S. Consumer Spending Little Changed as Income Gains Cool
- Spending still expected to drive growth in third-quarter GDP
- Core inflation gauge watched by Fed shows acceleration
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Consumer spending was little changed in August as income growth cooled, pointing to a softening in consumption after a run of strong gains.
The August result followed a 0.4 percent advance the prior month that was revised up, Commerce Department figures showed Friday. The median forecast in a Bloomberg survey called for a 0.1 percent increase. Income climbed 0.2 percent, while inflation-adjusted spending dropped for the first time since January.