1. Economy

    Consumer Spending Slows

    Shoppers pass Macy's department store,  Thursday, Aug. 4, 2011  in New York. The back-to-school season got off to a strong start as discounts and sweltering heat in July drove shoppers to air-conditioned malls. But retailers worry that momentum won't continue through the remainder of the second-biggest shopping period of the year. (AP Photo/Frank Franklin II)

    Frank Franklin II / AP Photo

    More bad economic news. Consumer spending slowed last month as incomes fell for the first time in almost two years. Purchases rose by 0.2 percent in August, but that’s after rising 0.7 percent the month before. Earnings, meanwhile, fell 0.1 percent, the first time earnings have fallen since October 2009. Wages and salaries fell 0.2 percent. The Institute for Supply Management found that its business barometer rose unexpectedly, however, buoyed mostly by manufacturing feeding demand from China.

    Read it at Bloomberg