US consumer spending up modest 0.3 per cent in August
WASHINGTON — U.S. consumer spending edged up a moderate 0.3 per cent in August as sales of cars and other durable goods fell. A key gauge of inflation slowed slightly after its biggest annual gain in six years.
The rise in spending represented a slowdown from gains of 0.4 per cent in both June and July, the Commerce Department reported Friday. Consumer spending is closely watched because it accounts for two-thirds of economic activity.
The government reported Thursday that the overall economy, as measured by the gross domestic product, grew at an annual rate of 4.2 per cent in the April-June quarter, the best in nearly four years.
However, GDP is expected to slow in the second half of this year to around 3 per cent. That pace would still be solid enough to boost growth for the full year to 3 per cent, the best annual performance in 13 years.