Consumer spending post moderate rise in July; Wages and Salaries make big jump

[Fred Sanders]

http://www.news1130.com/2015/08/28/us-consumer-spending-post-moderate-rise-in-july-wages-and-salaries-make-big-jump/

Associated Press

WASHINGTON – U.S. consumers increased their spending moderately in July, as wages and salaries made their biggest jump in eight months.

Spending rose 0.3 per cent in July, helped by purchases of big-ticket items such as cars, the Commerce Department reported Friday. June’s result was revised up to a matching 0.3 per cent gain.

Incomes increased 0.4 per cent in July. The key category of wages and salaries rose 0.5 per cent, the biggest advance since last November.

The report indicates that consumer spending, which accounts for 70 per cent of economic activity, got off to a good start in the third quarter. The result suggests that strong momentum from the second quarter rolled into July.