Americans stepped up their spending in August, defying some of the weakest readings on consumer sentiment and confidence in years.
\n\nPersonal consumption expenditures rose 0.9 percent, or $190.8 billion, the Commerce Department’s Bureau of Economic Analysis said Wednesday, after a revised 0.1 percent increase in July. Adjusted for inflation, spending increased 0.6 percent, following a 0.1 percent gain the prior month.
\n\nThe burst has not been matched by how households say they feel. The Conference Board’s consumer-confidence index fell to 81.9 in September, the lowest level since 2014. The University of Michigan’s sentiment index finished September at 48.1, down from 51.7 in August and 15 percent below its January reading. Consumers have pointed to high prices, gasoline costs and a weaker outlook for jobs and business. Those worries have not shown up at the cash register.
\n\nSpending on goods increased $114.1 billion and spending on services rose $76.7 billion. The largest contributions came from other nondurable goods, gasoline and other energy products, food services and accommodations, and motor vehicles and parts. Recreational goods also rose. Recreation services were the exception, falling $10.3 billion.
\n\nIncomes rose at a level consistent with the Federal Reserve’s two percent inflation goal. Personal income increased…
Original source: https://www.breitbart.com/economy/
