The US economy has received another boost as consumer spending rose in July—the fourth consecutive month of growth and a sign consumption may continue to propel the economy forward in the second half of the year.
Personal consumption—or what Americans spend on everything from eating out to hotel stays—jumped 0.3% last month compared to June, according to the Commerce Department. Incomes picked up as well, with a 0.4% gain compared to the previous two months, the Wall Street Journal reports.
However, the report also revealed anemic signs of inflation pressures, which have yet to hit the Federal Reserve’s 2% goal. The consumer expenditures price index shows inflation remained flat in July, compared to the previous year when the index was up 0.8%. Stagnant inflation remains one of the economic indicators keeping the Fed from boosting interest rates, though arguments have been made that we could see a rate hike as soon as next month. [WSJ]
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