US Consumer Spending Gained 0.4% in July
Consumer spending in the US, which accounts for more than two-thirds of economic activity, rose in July, pointing to strong economic growth early in the third quarter. The US Commerce Department reported, that consumer spending rose 0.4% in July, in a line with forecasts. Consumer spending rose 3.8% annualized rate in the April-June period. The growth is being supported by a robust labor market. Spending on goods rose 0.2% last month after slipping 0.1% in June. Outlays on services increased 0.4.% after surging 0.6% in the prior month.
The personal consumption expenditures (PCE) price index excluding the volatile food and energy components rose 0.2% after edging up 0.1% in June. On annual basis, core PCE price index rose to 2.0%.
The report also showed, personal income rose 0.3% in July after increasing 0.4% in the prior month. Wages gained 0.4%. The saving rate fell to 6.7% in July from 6.8% in June.