US consumer spending in August increases slightly above expectations, with high-income households being the main driving force.

Consumer spending in the United States slightly exceeded expectations in August, keeping the economy solid in the third quarter, while inflation continued to rise at a moderate pace. The US Commerce Department's Bureau of Economic Analysis announced on Friday that consumer spending increased by 0.6% last month, while July's growth was revised to 0.5%. Despite a significant slowdown in the labor market and stagnant job growth over the past three months, consumption continues to rise. This is mainly driven by high-income households, who benefit from a strong stock market and still high real estate prices. Data from the Federal Reserve this month showed that US household wealth surged to a record $176.3 trillion in the second quarter. However, low-income families still face pressure, and are burdened by rising prices due to import tariffs. When the federal government's cuts to nutritional assistance programs take effect, even greater pressure will follow. Oxford Economics' Chief US Economist Sweet said, "As consumption is mainly concentrated in high-income households, the risks to consumption growth forecasts also lie in the main drivers of household wealth - the stock market and real estate prices. The wealth effect on consumption spending is becoming increasingly important, and when stocks and real estate prices rise, this is a positive factor, but there are risks if they falter."