U.S. consumer spending increased 0.8% in August, according to the Department of Commerce. That follows a 0.9% gain in July.

Spending on durable goods, items such as cars, rose 2.8%, following an increase of 3.3% in July.

Spending on non-durable goods increased 0.9%, after rising by the same rate in the previous month. Spending on services climbed 0.3%, after a 0.5% rise a month earlier.

Consumer spending is powering ahead, despite a lack of income growth. U.S. personal incomes increased just 0.2% in August.

BMO Nesbitt Burns says that the robust increase in consumption was, “fuelled by the second-stage impact of the mid-year tax cuts.”

“However, early indications from September indicate that vehicle sales have come back down to earth this month, as incentive programs have become a bit less aggressive,” says Nesbitt.

Growth in personal incomes were modest, Nesbitt says, because job losses curtailed wage gains in August.