Washington, DC, September 29, 2006—Consumer spending rose 0.1 percent in August, compared with a 0.8 percent gain in July, according to the Commerce Department report.
Personal income in the period rose 0.3 percent in August, down from the 0.5 increase in July.
In inflation-adjusted dollars, spending actually slipped 0.1 percent.
Economists had forecast a 0.2 percent rise in August before adjusting for a rise in price. Income was in line with forecasts.
The so called core PCE deflator, which measures prices paid by consumers for goods other than food and energy, was up 0.2 percent in the month, compared to the 0.1 percent rise in July. The result was in line with economists' forecasts, though. The price reading is one of those closely watched by Federal Reserve policymakers as they work to keep inflation in check.
