American consumer spending continued to rise in August, according to new figures from the Commerce Department, but the rate of growth slowed significantly.
Personal consumption expenditure, which makes up around two-thirds of overall economic activity, edged up 0.3% for the month, lower than analysts’ expectations of 0.5% and well down on July’s spring-heeled 1% jump.
August’s rise was led by spending on durable goods, which increased 1.4% on the back of incentive-fuelled leaps in car sales. Non-durables and services both saw 0.2% increases.
The slowdown in spending growth comes in spite of an improvement in incomes, which climbed 0.4% in August after staying flat in July.
However, economists fear consumers may cut expenditure in the last few months of the year as uncertainty over jobs and the economy grows.
Data sourced from: USA Today; additional content by WARC staff