Economics
Engine of U.S. Economy Down But Far From Out as Spending Slows
- Unchanged reading in August follows upward revision for July
- Strong fundamentals signal boost to third-quarter growth
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Americans took a break in August after spending at a solid pace the past few months. While that’s no cause for alarm yet, consumption has been doing all the heavy lifting for the economy, so its ups and downs matter.
Consumer purchases, the biggest part of the economy, were little changed after a 0.4 percent advance in July that was revised up, Commerce Department figures showed Friday. After adjusting for inflation, spending fell for the first time since January, while after-tax incomes also cooled.