WASHINGTON — U.S. consumers grew more cautious last month amid wild stock-market swings, zero job growth and heightened concerns that the economy has weakened. Retail sales were flat in August. At the same time, wholesale inflation leveled off. The latest data could give the Federal Reserve more impetus to adopt additional stimulus next week.
“The combination of those two reports sets the stage for, and warrants, additional action by the Fed,” said Michelle Meyer, an economist at Bank of America Merrill Lynch.
In August, consumers spent less on autos, clothing and furniture, the Commerce Department said Wednesday. Hurricane Irene disrupted sales along the East Coast, analysts said. But many consumers also were spooked after a grim month that renewed recession fears. The Associated Press
