Despite rising incomes, consumers in the US increased their spending by 0.1% in August 2019, which is the lowest gain in six months.
One of the main drivers of the economy is consumers and businesses have reduced investment spending while exports have waned. This accounts for more than two-thirds of US economic activity. Consumer confidence is at a historically high level, but its slight turn could point to economic uncertainties from the ongoing trade dispute with China. August’s modest gain follows several months of healthy increases.
On Friday, the Commerce Department reported that personal incomes rose 0.4% over the previous month, while core prices increased 0.1%.