"The state of the consumer is going to continue to be relatively constructive. They're pretty much on the best footing that they've been this entire cycle."
- RCB Capital Markets LLC
Consumer spending in the United States increased during the previous month, as rising employment raised sentiment among consumers about future perspectives of their personal finances. Purchases added 0.5% in August on a monthly basis, a rebound from 0.1% decrease a month before. Services sector, which is mostly supported by private spending, accounts for more than 70% of country's economy, underlying its importance in overall economic success of the U.S. As employers add more jobs, it is increasing households' income and subsequent spending. However, the most recent data showed that wages jumped only 0.3%, just below the pace of spending's climb, meaning that U.S. customers use borrowed funds or savings as part of their spending.
Among sub-sectors, Americans spent 1.9% more on buying automobiles, more than 0.1% in July. Purchases of non-durable goods rose 0.3% month-on-month. Analysts explain that car sales in the U.S. continue contributing the most to overall economic strength of the country. Sales surged to annualized 17.5 million units in August, the largest number in more than eight years. Moreover, U.S. population spent 0.4% more on such services as tourism, legal services, personal care and utilities. This category, however, is most likely to be a subject to revising during the next report, as it is difficult to
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