Consumer Spending Jumps in August
October 1, 2009The government's "Cash for Clunkers" subsidy for car purchases spurred U.S. consumer spending in August to it's fastest increase, 1.3 percent, in eight years, MarketWatch reported Thursday.
Automobile sales led to a 5.3 percent increase in spending on durable goods in August. With the program ending the same month, however, that's likely a one-time event.
Real consumer spending rose 0.9 percent after adjusting for inflation, also the biggest gain since October 2001, when automakers slashed prices after the terror attacks, the report said.
