Federal Reserve

US consumer spending at weakest pace in 5 months

U.S. consumers scaled back their spending in August to its weakest pace in five months, reflecting a drop in spending on autos. Income growth also decelerated as wages and salary gains slowed following four strong months.

Consumer spending was unchanged last month after solid gains of 0.4 percent in July and 0.3 percent in June, the Commerce Department reported Friday. It was the poorest showing since a similar flat reading in March.

Personal incomes rose 0.2 percent last month, just half the gain in July. It was the weakest showing since a 0.1 percent drop in February. Wages and salaries, the biggest income category, were up just 0.1 percent after two months of 0.5...

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