Slowdown in US consumer spending

US spending rose by just 0.2% in July, official figures have shown, as the effects of a government package designed to boost growth wore off.

A separate survey, also released on Friday, said US consumer sentiment was at a 5-month high but warned of tough times ahead.
Personal income fell 0.7% in July, the sharpest fall since August 2005.
Friday's data provides further evidence of the weakness of the US economy after earlier reports of strong US growth.
The US economy grew at a revised 3.3% annual rate in the second quarter of 2008, the Commerce Department said on Thursday, much higher than its first estimate of 1.9%.
The rebound was linked to strong US exports, helped by the weak dollar, while government tax rebates also boosted consumer spending.
Tough times ahead
However, analysts said the consumer spending data indicated that the US economy was not out of the woods yet.
"There is not much that the market did not know here, but it is a reminder that the third quarter and particularly the fourth quarter will look a good deal worse than the second," said Alan Ruskin, chief international strategist at RBS Greenwich Capital.