US consumers boost spending 0.3 per cent in August as their income grows 0.4 per cent.

WASHINGTON – U.S. consumers increased their spending slightly last month as their income grew at the fastest pace in six months.

The Commerce Department says consumer spending rose 0.3 per cent in August. That’s up from a 0.2 per cent gain in July.

Income rose 0.4 per cent in August, the best gain since February and up from a 0.2 per cent July increase. Private wages and salaries rose $28.5 billion, while government’s increased $2 billion. Forced federal furloughs reduced government wages and salaries by $7.3 billion.

Consumer spending drives 70 per cent of economic activity. Many analysts forecast weaker overall growth of around 2 per cent in the July-September quarter, in part because of weaker consumer spending.