U.S. consumer spending accelerated in August, the government said on Monday, a positive sign for an economy that appears to be firing on nearly all cylinders.
The housing sector remains an exception, however, with a separate report showing Americans signed fewer contracts in August to purchase previously owned homes.
Nevertheless, the rise in household spending offered the latest suggestion that years of exceptionally low interest rates have finally pushed the economy into a higher gear.
Consumer spending rose 0.5% last month after being unchanged in July, the U.S. Commerce Department said. The growth in August was just above the median forecast in a poll of economists.
Even after adjusting for inflation, spending was 0.5% higher, the biggest gain since March. Growth in personal income ticked up 0.3%, in line with forecasts.
