U.S. consumer spending grew less than predicted in September as the prices of homes fell and fuel expenses increased, Bloomberg reported.

The 0.3 percent climb followed a revised 0.5 percent gain in August that was smaller than previously reported, the Commerce Department said today. The Federal Reserve’s preferred measure of inflation increased as anticipated. Economists had forecast spending would rise 0.4 percent, after an originally reported 0.6 percent gain for August, according to the median of 80 predictions made in response to a Bloomberg News survey.

Many Americans have less cash to buy cars or take vacations because homeowners are losing equity as home values drop. The slowdown boosts the risk that spending will weaken going into the holidays.

“Consumer spending is going to slow as we get into the fourth quarter,” said Michael Carey, chief economist for North America at Calyon Corp. in New York. “Consumers may be a bit cautious.”

The International Council of Shopping Centers and UBS Securities LLC last week reduced their October chain-store sales forecast after some merchants were forced to cut prices to draw customers.