WASHINGTON (Reuters) - Incomes fell for the first time in nearly two years in August and consumers dug into their savings to keep spending, according to a government report that showed the impact of the weak jobs market.
The Commerce Department said on Friday spending rose 0.2 percent, in line with economists' expectations, after increasing 0.7 percent in July. When adjusted for inflation, however, spending was unchanged after rising 0.4 percent in July.
Consumer spending accounts for about 70 percent of U.S. economic activity, so the flat inflation-adjusted reading adds to a picture of shaky GDP growth.
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