American consumers sharply increased their spending in August despite weakening confidence and continued concerns over prices, jobs and the broader economy.

Personal consumption expenditures jumped 0.9%, or $190.8 billion, in August, according to the Commerce Department’s Bureau of Economic Analysis, following a revised 0.1% increase in July. After adjusting for inflation, consumer spending still rose 0.6%.

The increase came despite some of the weakest consumer sentiment readings in years. The Conference Board’s consumer confidence index fell to 81.9 in September, its lowest level since 2014, while the University of Michigan’s sentiment index dropped to 48.1, down from 51.7 in August.

Consumers have cited high prices, gasoline costs and concerns about jobs and business conditions, but those worries have not translated into reduced spending. Spending on goods rose $114.1 billion, while spending on services increased $76.7 billion.

Major gains came from nondurable goods, gasoline and other energy products, food services and accommodations, as well as motor vehicles and parts. Recreational goods also saw stronger spending, while recreation services declined by $10.3 billion.

Personal income increased 0.2%, or $66.6 billion, as private wages and government benefits rose. Disposable personal income increased 0.3%, although real disposable income was unchanged after accounting for inflation.

With spending rising faster than income, the personal saving rate fell to 4.1% in August from a revised 4.6% in July. The decline suggests households were putting more of their available income toward consumption.

Inflation also remained elevated. The personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, rose 0.3% in August after increasing 0.1% in July. Prices excluding food and energy increased 0.2%.

On a yearly basis, the PCE index rose 3.4%, matching July’s increase, while the core index increased 3.0%. Both annual readings were below economists’ forecasts but remained above the Federal Reserve’s 2% inflation target.

The report also included annual revisions to national economic accounts dating back to January 2021, including revisions that lowered some previously published inflation readings. Consumer spending accounts for roughly two-thirds of U.S. economic output, making the August rebound an important sign of continued household demand despite elevated prices and borrowing costs.