WASHINGTON (UPI) — U.S. consumer spending rose 0.5 percent in August but most of that was due to rising prices, the U.S. Commerce Department said Friday.
Spending saw its biggest increase since February, gaining 0.1 percentage points more than July’s month-to-month increase, the department said. But prices rose 0.4 percent, leaving spending up 0.1 percent when the figures are adjusted for inflation.
Incomes rose 0.1 percent — $15 billion — and disposable income gained 0.1 percent or $12.5 billion. But when adjusted for inflation, disposable incomes fell 0.3 percent, the Bureau of Economic Analysis said.
Private wages and salaries rose by 0.1 percent or $4.7 billion in August after rising $9.3 billion in July.
With spending rising faster than incomes, the savings rate declined from 4.1 percent to 3.7 percent.