US incomes rise 0.4 percent; spending is flat

WASHINGTON (AFP) - Healthy wage growth boosted US personal incomes by 0.4 percent in August, but consumer spending was flat for the month, the Commerce Department said.
With incomes up and spending flat, the personal savings rate rose to 0.9 percent in August from a near-record low of 0.5 percent in July.
July's consumer spending figures were revised higher to show a 1.1 percent increase from 0.8 percent previously. June's spending was revised lower to a 0.3 percent decline from a 0.2 percent decline. Incomes increased 0.2 percent in June and July.
August incomes expanded on a 0.4 percent increase in wages and salaries.
But proprietors' income fell 0.2 percent. Hurricane Charley, which hit Florida in the middle of the month, affected incomes in several ways, the Bureau of Economic Analysis said. Rental income was reduced by about 11 billion dollars, while insurance payments added 12.5 billion.