Consumer Spending Surges in August

By Sean Maher in West Chester 10/1/2009

Consumer spending soared in August, propelled by new vehicle sales and the highly effective cash for clunkers incentive. Meanwhile, real spending increased by smaller degrees for almost every other category of goods and services. Real personal consumption expenditures jumped by 0.9% in August over the previous month. Nominal spending was similarly strong in August, increasing by 1.3%. The monthly increases in both real and nominal spending were the largest since October 2001, when the introduction of 0% financing revved up vehicle sales....

Moody's Economy.com, 121 North Walnut Street, Suite 500, West Chester, PA 19380, United States