Consumer spending was strong in August while inflation remained elevated


Americans ramped up their spending in August, regardless of elevated inflation, new information confirmed Friday.

Consumer spending rose 0.6% from July, in line with Commerce Department information launched Friday. That was above expectations for a 0.5% bump, in line with FactSet consensus estimates.

The Personal Consumption Expenditures value index — the inflation gauge the Federal Reserve makes use of for its 2% goal price — rose 0.3% on a month-to-month foundation, which lifted the annual price to 2.7% from 2.6%.

Inflation, as measured by the PCE value index, is at a six-month excessive.

Economists have been anticipating inflation to rise 0.3% from July and improve to 2.7% yearly.

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