US consumer spending rebounds in July

US consumer spending rebounded in July as Americans bought more cars and other long-lasting items and disposable incomes rose.

Spending was up 0.8 per cent over the month, the strongest increase in five months, following a revised 0.1 per cent fall in June, the commerce department said. July’s boost was stronger than the 0.5 per cent rise economists had expected. Adjusted for inflation, spending rose 0.5 per cent.

Consumption is a critical driver of US economic growth, accounting for about 70 per cent of gross domestic product, so July’s rebound strikes a positive note for the beleaguered recovery if Americans continue to accelerate purchases through the second half of the year.

Read Full Article from Financial Times

- Posted: 2011-08-29 09:03:46

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