Americans' personal income grew by just 0.1 percent in August from July and consumer spending would have been basically flat as well if it hadn't been for higher gasoline prices, .
Overall, spending grew 0.5 percent last month. But, , "households stretched to pay for higher gasoline prices." According to the report, the cost of "energy goods and services," which gasoline is a large part of, rose 5.8 percent in August from July.
Since consumers purchase about 70 percent of goods and services, their spending is a key economic driver.
the August spending news 鈥� because the growth was mostly due to higher prices, not stronger demand for goods and services 鈥� signals "the economic expansion is struggling to gain momentum."
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