- Joe Raedle / Staff / Getty Images
Personal income rose 0.2% in August, while spending was flat, according to the Department of Commerce.
Economists had forecast that personal incomes increased by 0.2%, while spending rose 0.1%, according to Bloomberg. The August data reflect a slowdown from a relatively strong July.
On Thursday, the third estimate of second-quarter gross domestic product showed that consumer spending continued to play a key role in holding up the economy as businesses cut back.
Core personal consumption expenditures, a gauge of inflation that excludes volatile food and energy prices, rose 0.2% month-on-month. Year-on-year, it climbed for the first time since February, to 1.7% from 1.6%.
This is the Fed’s preferred way to measure inflation, and the year-on-year increase is still below its 2% target.
This report also included the savings rate, which slipped in recent months but rose for a second straight period and is still above pre-recession levels, at 5.7%.