An unexpected drop in incomes for the month of August resulted in consumers holding off on purchases. Following a 0.7 percent increase in consumer spending in July, spending for August was essentially unchanged after adjusting for inflation.
Ã¢â‚¬Å“Consumers right now have extremely low confidence,Ã¢â‚¬Â Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities Inc., said before the report. Ã¢â‚¬Å“They have a sour assessment of economic conditions and they are facing a lot of uncertainty about future earnings and employment prospects, and because of that there is a degree of hesitancy with respect to big ticket purchases.Ã¢â‚¬Â
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