UPDATE: Fewer auto sales dent consumer spending in August, inflation still weak
By Jeffry Bartash, MarketWatch
Consumer spending up 0.1%, while core inflation lowest since 2015
The numbers:Consumer spending rose just 0.1% in August (https://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm) after a strong gain in the prior month. If adjusted for inflation, however, spending fell for the first time since January.
Personal income climbed 0.2%, above the 0.1% forecast. The savings rate was flat at 3.6%.
Inflation remained subdued. The Federal Reserve's preferred inflation gauge, known as PCE, increased 0.1% in August. The closely followed "core" rate that strips out food and energy edged up 0.1%.
Neither index rose on a yearly basis.
What happened: Consumer spending slowed in August largely because of fewer sales of new cars and trucks. Auto sales dropped 1.8% last month. Hurricane Harvey may have also been a drag on the economy.