Tumbling gasoline prices gave consumers more purchasing power and led to a rise in real consumer spending last month, the government reported.

Tumbling gasoline prices gave consumers more purchasing power and led to a rise in real consumer spending last month, the government reported.

Tumbling gasoline prices gave consumers more purchasing power and led to a rise in real consumer spending last month, the Commerce Department reported.

The reports show drops in durable goods and consumer spending, but the declines were less than forecast.

Orders to American factories plunged by the largest amount in nearly two years as the credit strains began to hit manufacturing with full force.

Spending by businesses on major items fell in August after three monthly increases, reinforcing the sense that businesses are nervous about making long-term investments amid the downturn.

Wall Street posted a big advance after a larger-than-expected increase in orders for durable goods, indicating that the economy is stronger than many investors thought.

Unexpected increases in consumer confidence and business spending reported on Friday buoyed investors’ spirits after a bumpy week.

Unexpected increases in consumer confidence and business spending reported on Friday buoyed investors’ spirits after a bumpy week.

Unexpected increases in consumer confidence and business spending reported on Friday buoyed investors’ spirits after a bumpy week.