Consumer spending picked up in August, a sign the U.S. economic recovery is gaining steam heading into the fall.

Personal outlays on goods and services rose 0.8% in August from the month before, after a 0.1% decrease in July, the Commerce Department reported Friday.

Personal income increased 0.2% in August, reflecting wage gains and the federal government’s distribution of child tax credits. Those were partly offset by declines in unemployment insurance as many states ended pandemic-related supplemental payments, the Commerce Department report noted.

The highly contagious Delta variant of the coronavirus triggered a summer slowdown in spending on meals out, hotels and airline tickets. Still, consumers remain in a strong position to help power the economic recovery. They have accumulated high levels of savings and are benefiting from an abundance of job openings and rising wages.

Read more…

Share.

Comments are closed.