(Reuters) – U.S. household spending rose in August while core inflation slowed, according to data released by the Commerce Department on Friday.
Consumer spending, which represents more than two-thirds of US economic activity, increased by an adjusted 0.4% last month, compared to an increase of +0.9% (revised) in July.
Economists polled by Reuters expected on average a 0.4% increase in spending.
The increase in household spending partly reflects the increase in prices, particularly those of fuel which pushed up the PCE inflation measure last month.
The PCE consumer price index increased by 0.4% in August over one month after +0.2% in July. Its increase over one year stands at +3.5% after +3.4% (revised).
The basic “core PCE” inflation index, closely monitored by the Federal Reserve and which excludes the volatile elements such as energy and food products, increased by 0.1% over one month after +0.2 % in July.
Over one year, its increase is 3.9%, compared to 4.3% in July.
Economists polled by Reuters expected on average an increase of 0.2% over one month and 3.9% over one year.
(Report by Nathan Vifflin, edited by Blandine Hénault)
©2023 Thomson Reuters, all rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. “Reuters” and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.