Consumer spending picked up in August, according to federal data released Wednesday, but experts questioned how sustainable that can be.
Consumer spending ticked up 0.9 percent last month. But personal income increased only 0.2 percent, leaving a gap that Americans are filling in part by dipping into their savings.
The personal savings rate hit the lowest level in almost four years, according to the personal consumption expenditures data from the Bureau of Economic Analysis.
The data, which tracks the preferred inflation measurement of the Federal Reserve, showed that prices climbed 3.4 percent since the same month last year, sticking stubbornly higher than the Fed’s 2 percent target.
Consumers are feeling increasingly dreary about the economy, as wages fall behind inflation and prices rise sharply for everyday necessities such as gasoline.
Still, overall economic growth remains steady. Revised figures released Wednesday by the Commerce Department show gross domestic product grew 2.2 percent in the second quarter of the year.
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The post Americans spent more in August but they raided their savings to do it appeared first on Washington Post.
