US consumer spending rose at a healthy rate in August, while income growth slowed after a big jump in July.
The Commerce Department says consumer spending advanced 0.4 per cent compared to July, when spending also increased by 0.4 per cent. In both months, the spending increases were led by strong gains in spending on durable goods such as cars.
Personal income was up 0.3 per cent in August, helped by another solid increase in wages and salaries. The result follows a 0.5 per cent income gain in July, which had been the best showing in eight months.
Consumer spending accounts for two-thirds of economic activity.
It is expected to remain strong in the second half of this year, helping to buffer against a global slowdown that has hurt American manufacturers.
