Fed's Barkin says he could see upward surprise on spending data

WASHINGTON, Aug 14 (Reuters) - A still-low unemployment rate and continued wage gains could keep household spending healthier than expected, even as lower- and even middle-income families shop more aggressively to avoid rising prices, Richmond Federal Reserve Bank President Tom Barkin said on Thursday.

People "are trading down...buying more private label, going more to Walmart or Aldi," Barkin said in a speech to the National Association for Business Economics. But, he said, "I am getting the smell of a stronger July on the consumer side. ... Consumer spending might be taking a step up" based on weekly credit card reports from banks.