Consumer spending rises 0.5%, personal income up 0.3%

WASHINGTON (AP) — Americans boosted spending by a healthy amount in August, with about half of the increase coming from auto sales. Income rose by a modest amount.

The Commerce Department says consumer spending rose 0.5% in August after showing no gain in July. It was the best result since spending also expanded 0.5% in June. Helped by strength in wages and salaries, income rose 0.3% in August, slightly faster than a 0.2% July increase.

The spending gain was welcome evidence that the economy is maintaining strength in the current July-September quarter. Consumer spending accounts for about 70% of economic activity, and the slowdown in July had raised concerns about whether the economy would retain the momentum it showed in the spring after a harsh winter.