Market Wire: US Consumer Spending and Inflation Measures Decelerate On Dropping Gas Prices, Dollar Ticks Lower
American households slowed spending last month as falling gasoline prices helped offset an increase in services outlays – and the Federal Reserve’s preferred inflation measure rose by less than expected. Data released by the Bureau of Economic Analysis this morning showed inflation-adjusted household outlays climbing 0.2 percent in July – roughly corresponding with a previously-reported flatlining in retail sales. A $33.3 billion increase in spending on services was partly offset by a $9.6 billion drop in spending on goods, with energy costs dragging the number down. In unadjusted terms, personal income rose 0.2 percent month-over-month, led by a solid 0.8...