Personal Spending Gains Slightly in August

September 29, 2006 9:15 AM, EDT

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onsumer personal spending rose 0.1% in August, while an inflation gain preferred by the Federal Reserve posted its highest gain since 1995, the Commerce Department said Friday.

The uptick in personal spending is the smallest increase since November and follows a 0.8% gain in July.

Personal incomes rose 0.3%, following a 0.5% gain in July, Bloomberg said.

Meanwhile, a Federal Reserve gauge of inflation rose 2.5% from the same month last year, the biggest year-over-year gain since April 1995, Bloomberg reported.

An increase in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.