Higher gas costs push US consumer spending up
Source: AP-Excite
By MARTIN CRUTSINGER
WASHINGTON (AP) - Americans boosted their spending in August even though their income barely grew. Much of the spending increase went to pay higher gas prices, which may have forced consumers to cut back elsewhere.
The Commerce Department said Friday that consumer spending rose 0.5 percent in August from July. It was the biggest jump since February.
Gas prices rose nearly 50 cents per gallon in July and August, but have since leveled off. Excluding the impact of higher gas prices and other price gains, spending ticked up only 0.1 percent last month.
Income grew only 0.1 percent, too. But after accounting for inflation and deducting taxes, income actually fell 0.3 percent - the poorest performance since November.
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In this Wednesday, Aug. 22, 2012 file photo, a shopper pushes a trolley through the clearance section of a store in Chicago. Americans spent at the fastest pace in six months in August but much of that increase went to pay their higher gas bills, the Commerce Department announced Friday, Sept. 28, 2012. (AP Photo/Sitthixay Ditthavong, File)