AP WASHINGTON -- American consumers spent more in August, a positive sign for the U.S. economy which appears to have shifted into a higher gear. The Commerce Department said Monday consumer spending rose 0.5 percent last month after being unchanged in July. The growth in August was just above the median forecast in a Reuters poll of a 0.4 percent gain. "[The data are] a further signal that the positive momentum in domestic activity is being sustained," said Millan Mulraine, an economist at TD Securities in New York. Even after adjusting for inflation, spending was 0.5 percent higher, the biggest gain since March. Growth in personal income ticked higher to a 0.3 percent gain, in line with forecasts. Some of the strength in spending came from a decrease in the saving rate, which eased back from a 1½ year high in July. The data reinforce the view that the U.S. economy will finish this year firing on nearly all cylinders, and the dollar pared an earlier decline following the report's publication. Most investors are betting the U.S. Federal Reserve could raise interest rates next year to keep inflation in check, though Monday's data gave little sign of growing price pressures. The Fed's preferred gauge of inflation was up 1.5 percent in August from a year earlier, down slightly from the reading in July, the Commerce Department data showed. A measure of underlying price pressures which strips out food and energy held at 1.5 percent. That reading had dipped to 1.2 percent earlier this year. Some policymakers at the U.S. central bank remain concerned that inflation remains stuck well below their 2 percent target. Chicago Fed President Charles Evans said on CNBC television Monday that the Fed should patiently seek to push inflation up to its target so it doesn't have to "backtrack" after raising rates. Data released Friday showed the U.S. economy grew at its fastest pace in 2½ years in the second quarter with all sectors contributing to the jump in output. Relatively strong consumer spending during the period was taken as a sign the economy's recovery from the 2007-09 recession is becoming more durable.
Affected: 56 million cards. Duration of compromise: Five months. Tactic: Malware was installed to skim payment card data; unclear how hackers found an entry into the company's network.
Reuters 
Eye-Stock/Alamy More than 6 million power cords that came with two popular notebook computers are being recalled because they could start fires or burn consumers, the Consumer Product Safety Commission said on Tuesday. Hewlett-Packard (HPQ) is recalling 5.6 million cords sold in the U.S. and another 447,000 in Canada after getting 29 reports of the power cords overheating and either melting or charring. Two consumers reported suffering burns, and the company told the CPSC that it received 13 reports of property damage. The Chinese-made cords came with HP and Compaq notebook computers and mini notebook computers, as well as with accessories that use an AC adapter, including docking stations. The cords came with devices sold between September 2010 and June 2012. "HP believes that certain power cords shipped with notebook PC products and AC adapter accessories may pose a risk of a fire and burn hazard to customers," the company said in a statement. "We are taking this action as part of our commitment to provide the highest quality of service to our notebook customers." Not every cord sold with every device is affected by the recall. The recalled HP power cords are black and have the code LS-15 molded onto the AC adapter end. 
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