US consumers scale back spending

Associated Press

WASHINGTON

U.S. consumers scaled back their spending in August to its weakest pace in five months, reflecting a drop in spending on autos. Income growth also decelerated as wages and salary gains slowed after four strong months.

Consumer spending was unchanged last month after solid gains of 0.4 percent in July and 0.3 percent in June, the Commerce Department reported Friday. It was the poorest showing since a similar flat reading in March.

Personal incomes rose 0.2 percent last month, just half the gain in July. It was the weakest showing since a 0.1 percent drop in February.