U.S. consumer spending rose by 0.4 percent in July, doubling the increase recorded in the previous month, the Commerce Department reported Friday.
The report showed that consumer spending on durable goods, items expected to last at least three years such as cars and appliances, increased by 0.3 percent in July, rebounding from a 1.7-percent drop in June.
Meanwhile, spending on non-durables such as food and clothes increased by 0.5 percent.
Spending on services also climbed by 0.4 percent in July, but below the 0.6-percent gain in June.
On the other hand, personal income, the fuel for future spending, rose 0.5 percent in July, up from the 0.4-percent increase in June. The July increase in incomes was the best showing since March this year.
Americans' disposable personal income, or after-tax income, rose by 0.6 percent, compared to a 0.4 percent gain in June.
With income outpacing spending growth, the personal savings rate -- savings as a percentage of disposable personal income -- moved up to 0.7 percent in July, slightly above the 0.5-percent rate in June.
Consumer spending accounts for two thirds of overall economic activity and is a major force pushing economic growth.
Source: Xinhua
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