US consumer spending rises 0.3 percent in August

Last Updated: Fri, Sep 27, 2013 17:20 hrs

Washington, Sep 27 (IANS) US families continued to boost their spending in August as their take-home income posted a solid gain, the US Commerce Department said Friday in a report.

US personal consumption expenditures (PCE) rose 0.3 percent in August, higher than the 0.2 percent growth pace in July, Xinhua reported citing the report.

US personal income edged up 0.4 percent in August, after rising 0.2 percent in July, said the department.

The US savings rate, which is personal saving as a percentage of disposable personal income, ticked up to 4.6 percent in August from 4.5 percent in July.

Consumer spending accounts for about 70 percent of the US economic activity.

US real gross domestic product (GDP) expanded at an annual rate of 2.5 percent in the second quarter this year, boosted by a recovering real estate market and consumer spending.

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