US Consumer Spending Rebounds 0.9% in August as Inflation Gauge Rises Sharply

U.S. consumer spending rebounded sharply by 0.9% in August, signaling economic acceleration following minimal growth in July. The gains were driven by demand for new automobiles, restaurant spending, and clothing purchases. The rebound arrived alongside data showing the Federal Reserve's preferred inflation gauge increased sharply in August, maintaining pressure on policymakers after they raised interest rates earlier in the month for the first time in three years. Following the inflation data, major equity benchmarks reacted cautiously, with the S&P 500 slipping 0.17% and the Dow Jones Industrial Average dropping 0.26%.