Consumer spending flat in August

WASHINGTON — Consumers were tightfisted with their money amid soaring gasoline costs in August and hurricane-related disruptions last week sent applications for jobless benefits to their highest level in seven months.

Overall spending was flat in August, the Commerce Department reported Thursday. But July’s increase in consumer spending was 1.1 percent, higher than the 0.8 percent initially reported, as consumers overcame their worries about energy costs and a sluggish jobs market.

Americans’ income, the fuel for future economic growth, increased by 0.4 percent in August following a 0.2 percent rise the previous month. August’s showing was the highest since May, which recorded a 0.5 percent increase. The spending and income figures are not adjusted for price changes.

In a separate report, the number of U.S. workers filing first-time applications for unemployment benefits rose by 18,000 to a seasonally adjusted 369,000 for the week that ended Sept. 25, the Labor Department reported. That marked the highest level since the week of Feb. 7.

A Labor Department statistician said the increase was caused by hurricanes Charley, Frances and Ivan. Jobless claims have risen in five of the six weeks since the hurricanes began to strike Florida in mid-August. The four-week average of claims, as a result, has moved steadily higher. Last week it stood at 343,500 - a two-month high.