Expectations for consumer data in August were for only mild growth in spending and income levels among consumers. The monthly percent change in personal income held steady near the forecast 0.3%, but spending levels surged an unexpected 0.8%. This data outpaced last month’s adjusted contraction of 0.1% in the same indicator.
The reports, issued by the US Bureau of Economic Analysis, represent stability in consumer prices in the American economy. The Core Personal Consumer Expenditures (PCE) CPI reading also revealed stability as it came in at the forecast level of 0.2% growth. Though markets anticipate a downturn, price increases appear to be holding steady relative to consumer income.
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