Consumer spending barely increases in August

Washington

US consumer spending barely rose in August likely as Hurricane Harvey weighed on car sales and annual inflation increased at its slowest pace since late 2015, pointing to moderation in economic growth in the third quarter.

The Commerce Department said on Friday consumer spending, which accounts for more than two-thirds of US economic activity, edged up 0.1 per cent last month also as unseasonably mild temperatures reduced demand for utilities. That followed an unrevised 0.3 per cent increase in July.