US consumer spending rises 0.6% in August
US consumer spending went up by 0.6% in August, surprising many who expected a slowdown.
Most of the boost came from high-income households riding gains in stocks and home values, even as job growth cooled off.
But while some people are thriving, others—especially lower-income groups—are still struggling with rising prices.
Inflation and interest rates remain key concerns
Consumer spending makes up over two-thirds of the US economy, so these numbers matter.
Inflation ticked up again in August, pushing the Federal Reserve to stay cautious with interest rates.
Even though total household wealth hit a record $176 trillion earlier this year, experts warn that high prices and cuts to food aid could slow spending soon—especially for those already feeling squeezed.
The Fed is keeping an eye on inflation as it aims for its 2% target, but for now, the economy is still growing at a solid pace.