US Consumer Spending Jumps 0.9% in August as Savings Rate Falls to 4-Year Low
Updated
Updated · The Washington Post · Sep 30
US Consumer Spending Jumps 0.9% in August as Savings Rate Falls to 4-Year Low
3 articles · Updated · The Washington Post · Sep 30
Summary
August consumer spending rose 0.9%, outpacing a 0.2% gain in personal income and pushing Americans to draw down savings.
The personal savings rate fell to its lowest level in nearly four years, underscoring concerns that household demand is being sustained by thinner financial cushions.
PCE prices were up 3.4% from a year earlier, still well above the Federal Reserve’s 2% target as wages lag inflation and essentials such as gasoline get pricier.
The strain on households contrasts with still-steady growth: revised Commerce Department data showed second-quarter GDP expanded 2.2%.