Consumer and construction spending rose in August

Consumer personal spending rose 0.4 percent in August as incomes improved, the Commerce Department said.
The gain was greater than economists’ forecasts of a 0.3 percent increase, Bloomberg reported.

Personal incomes rose 0.5 percent, the biggest gain this year, Commerce said. Economists had forecast a 0.2 percent increase.

Construction spending also rose 0.4 percent in August, the Commerce Department said.

The gain to $811.8 billion followed a revised 1.4 percent drop in July that was larger than originally reported.

The increase was in contrast to economists’ forecasts of a 0.4 percent decline, Bloomberg reported. Spending was down 10 percent for the 12 months ended in August.

Private residential construction slipped 0.9 percent, while spending on private non-residential construction projects declined 1.4 percent.

Spending on government projects rose 2.5 percent. Federal spending rose 0.7 percent, while state and local construction spending jumped 2.7 percent.
 
A rise in consumer and construction spending could increase demand for trucking services because spending increases the number of shipments of goods and building materials.