August data showed that many Americans enjoyed an increase in their personal incomes which made them spend more and save less; a positive sign the economy of the country is heading in the right direction.
On Monday, the Commerce Department announced that consumer spending went up to 0.5% in August after data for the months June and July showed no difference. The increase in consumer spending happened even with the country’s adjustment to inflation. Experts say that the strength in spending resulted from the decline in personal savings rate which by the way slipped at 0.2%.
The data for August showed that there’s a change for the country’s economy to end this year firing on almost all cylinders. Also, this can mean that the U.S. Federal Reserve will be able to put a raise on 2015 interest in order to keep inflation in check.
The summary on Friday’s data reflected that the U.S. economy experienced its fastest growth pace which for almost three years already. All the sectors of the economy contributed to the great output in the second quarter of 2014.