NFIB Weekly News

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Consumer Spending Up 0.1% In August; Income Rose 0.4%, Savings Rose To 8.1% (10/01/2019)

The AP (9/27, Rugaber) reported the Commerce Department on Friday reported that US consumer spending rose “just 0.1% in August, the smallest gain in six months,” while “incomes rose at a solid pace” of “0.4%, up from a small gain in the previous month.” The AP added that “excluding the volatile food and energy categories, core prices ticked up 0.1%,” and “the savings rate rose to 8.1%, a sign that consumers have a healthy financial cushion and aren’t overspending.” Meanwhile, “the Fed’s preferred inflation gauge climbed just 1.4% in August compared with a year earlier, below its 2% target,” and it has “mostly been below that level since the target was adopted in 2012.”