Weak income curbs US consumer spending in August
Consumer spending adjusted for inflation was flat in August as income fell for the first time in nearly two years amid a weak labor market, according to a government report on Friday.
The Commerce Department said real consumer spending was unchanged after rising 0.4 percent in July. Nominal spending was up 0.2 percent after increasing 0.7 percent in July. The increase last month was in line with economists' expectations.
Consumer spending accounts for about 70 percent of US economic activity.
Weak incomes as employment growth ground to a halt and earnings fell hurt spending in August. Income slipped 0.1 percent, the first decline since October 2009, with private wages and salaries dropping $12.2 billion.
Economists had expected income to edge up 0.1 percent.
Consumer spending growth slowed sharply to a 0.7 percent annual pace in the second quarter after advancing 2.1 percent in the first three months of the year.
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