Consumer spending up, inflation muted in August

[ProSense]

Source: Reuters

WASHINGTON (Reuters) – Consumer spending rose slightly more than expected in August, but inflation remained subdued, leaving the door open for the Federal Reserve to launch a fresh round of monetary policy easing.

The Commerce Department said on Friday spending increased 0.4 percent after rising by the same margin in July. Analysts polled by Reuters had forecast spending, which accounts for about 70 percent of U.S. economic activity, rising 0.3 percent in August.

The Federal Reserve's preferred measure of consumer inflation -- the personal consumption expenditures price index, excluding food and energy -- rose only 0.1 percent for a fourth straight month.

<...>

In August, spending was supported by a 0.5 percent rise in personal income, the largest rise since December, the Commerce Department report showed. The rise in incomes was above market expectations for a 0.3 percent increase and followed a 0.2 percent gain in July.

Read more: http://news.yahoo.com/s/nm/20101001/bs_nm/us_usa_economy_spending_1

[girl gone mad]

1. The expectation on consumer spending was .4%

http://www.marketwatch.com/story/aug-consumer-spending-up-02-vs-04-expected-2010-10-01

The real pain of deleveraging still lies ahead..

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x82514

[Blandocyte]

2. It's cuz I bought a car, baby!

Nice li'l ol' Honda CR-V

[hayu_lol]

3. These economic nitwits...

don't seem to be aware that parents buy schoolclothes and supplies in August. Been doing that for a couple hundred years.

DUH!

[defendandprotect]

4. "Infaltion muted" ...? Every dollar anyone had pre-Bush is now worth 50 cents -- !!