U.S. consumer spending barely rises; core inflation moderates

U.S. consumer spending barely rose in

August likely as Hurricane Harvey weighed

on auto 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 U.S. economic

activity, edged up 0.1 percent last month

also as unseasonably mild temperatures

reduced demand for utilities. That followed

an unrevised 0.3 percent increase in July.

Last month’s gain in consumer spending was

in line with economists’ expectations. When

adjusted for inflation, consumer spending

slipped 0.1 percent in August, the first drop

since January.

The government said the data reflected the

effects of Hurricane Harvey. However, it

could not separately quantify the total

impact of Harvey on the data. It said it

made adjustments to estimates where

source data were not yet available or did not

fully reflect the effects of the storm.