Consumer Spending Rises a Bit; Incomes Climb Solidly, but Stronger Economic Growth Faces Headwinds
Consumers boosted their spending only modestly in August, the latest sign of the U.S. economy struggling to gain steam as worries about government policies cloud the outlook.</br></br>Personal consumption, a broad measure of spending on everything from refrigerators to health care, rose 0.3% in August from a month earlier, the Commerce Department said Friday. Adjusted for inflation, spending climbed 0.2%.</br></br>The gains, while a slight pickup from July, showed consumers maintaining a relatively cautious stance as they moved into the fall. That could diminish hopes for a pickup in economic growth in the second half of the year.</br></br>Many economists say household spending is likely to slow if Washington's budget battles spook consumers, businesses and investors.</br></br>Consumer confidence already appears to have taken a hit after climbing into the summer: The University of Michigan reported Friday that its latest gauge of consumer sentiment fell to a five-month low.