Drop in U.S. consumer spending clouds Fed rate hike outlook

``U.S. consumer spending fell in August for the first time in seven months while inflation showed signs of accelerating, mixed signals that could keep the Federal Reserve cautious about raising interest rates. The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, fell 0.1 percent last month after accounting for inflation. Analysts polled by Reuters had expected a 0.1 percent gain.''