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Pricey gasoline hits U. S. consumers, weighs on growth

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WASHINGTON (Reuters) – U. S. households stretched to pay for costlier gasoline on meager income growth in August, undercutting spending on other items and pointing to lackluster economic growth. Other data on Friday showed factory activity in the Midwest contracted this month for the first time in three years. The Commerce Department said consumer spending rose 0. 5 percent last month after gaining 0. 4 percent in July. The increase was the largest in six months, but it reflected a rise in gasoline costs that pushed inflation up by the most in nearly 1-1/2 years. . . .

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