Consumer spending flags, but confidence rises

Business activity in the Milwaukee, Wisconsin, region contracted for the sixth straight month, hit by a drop in new orders, the ISM-Milwaukee said.

Separately, the National Association of Purchasing Management-New York said its index of current business conditions rose to 45.3 in August from 38.5 in July.

While fast-rising food and energy prices have taken a big toll on U.S. consumers and businesses, a big drop in the price of oil since a record high reached last month could soon offer a wave of relief.

(Additional reporting by Burton Frierson and Pedro Nicolaci da Costa in New York and Ros Krasny in Chicago; Editing by Neil Stempleman)