Consumer Spending Flat in August

Washington, DC, Sept. 29, 2008--Despite a big rebound in auto sales, U.S. consumer spending was flat in August, the third consecutive month of weak consumption, the Commerce Department reported Monday.

The weaker-than-expected consumption figures raise the odds that consumer spending declined in the third quarter of the year.

Personal incomes increased 0.5%. Inflation moderated during the month, with the personal consumption expenditure price index unchanged. However, core inflation (which excludes food and energy prices) rose 0.2%, as expected.

Core inflation has risen 2.6% in the past year, the largest increase in 13 years.