September 28, 2007


Spending, construction both rise (MARTIN CRUTSINGER, AP)

Consumers shrugged off a rash of bad news to spend more than expected in August while a key measure of inflation eased to the slowest pace in 3 1/2 years. Construction activity also rose above expectations.

The Commerce Department reported Friday that consumer spending rose by 0.6 percent in August, the best showing in four months and better than the 0.4 percent increase that had been expected. Incomes rose by 0.3 percent, slightly lower than had been expected.

A closely watched gauge of inflation was up just 1.8 percent in August, compared to the same period a year ago, the smallest increase since a similar rise in February 2004.

...but America has a steel throat.

Posted by Orrin Judd at September 28, 2007 7:22 AM
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