US economy cools in August as consumer spend less than expected

Bookings for non-military capital goods, a proxy for business investment, fell 0.2%


THE US economy cooled in August as Americans spent less than projected and companies cut capital-equipment orders, with below-forecast prices also adding to concerns that may support the case for further Federal Reserve easing. Treasury yields pared gains.

Consumer spending on goods and services, which accounts for about two-thirds of gross domestic product, increased 0.1 per cent from July, the smallest gain in six months, Commerce Department data showed on Friday.

The Fed's preferred underlying price gauge rose 0.1 per cent from July, missing the median 0.2 per cent estimate, while the gain in incomes matched projections.

A separate Commerce Department report showed that bookings for...

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