Consumer Spending Rebounds in July
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The Commerce Department said consumer spending rose by 0.4 percent in July, double the June increase. The spending was supported by a solid 0.5 percent rise in incomes.
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New home sales turned up and factory orders soared in July, suggesting the economy was on stable footing before a credit crunch took a turn for the worse.
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The US economy grew at a 3.9 percent annual pace from July through September, faster than initially estimated last month, as consumers spending strengthened.
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Consumers boosted their spending in July by the largest amount in six months, offering hope that the current economic slowdown may not be as severe as some had feared.
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Sales of new single-family U.S. homes unexpectedly rose in July and new orders for durable goods posted strong gains that underlined the economy's strength just before a credit crisis socked financial markets.
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The economy headed into the summer with better momentum, propelled by a manufacturing rebound and consumers who eagerly went shopping and sightseeing despite high gas prices.
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After months of being buffeted by higher energy costs, consumer prices posted a rare decline in July while output at U.S. factories and construction of new homes and apartments rebounded from their June swoon.
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Consumers returned to the malls in July after taking a breather in June, although worries about the future could make the rebound short-lived.
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Consumer spending accelerated in October as a surge in hiring led to the biggest rise in incomes in five months.
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Consumer confidence bounced back unexpectedly in May, helped by optimism about the job market even as shoppers' concerns about gasoline price-driven inflation increased
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WASHINGTON -- The economy headed into the summer with strong momentum, propelled by a manufacturing rebound and consumers who eagerly went shopping and sightseeing despite high gas prices.
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Shoppers spent more freely in July as consumer spending rose slightly, though tepid growth in personal income raised concern about whether the trend will continue.
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America's factories saw orders for costly manufactured goods in July post the biggest gain in four months, an encouraging sign that the economy is emerging from an early summer funk.
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Factories saw orders for big-ticket goods jump 5.9 percent in July, the most in 10 months, an encouraging sign that many manufacturers are holding up to the stresses caused by a housing slump and a credit crunch.
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U.S. consumers spent heartily in  July on goods ranging from cars to electronics as sales at  retail stores rose a greater-than-expected 1.4 percent, a  government report on Friday showed, suggesting the economy  still had spark.
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Consumers undeterred by escalating credit problems and a weakening housing market went on a back-to-school buying spree last month, helping many retailers rebound from July's disappointing sales. But analysts are still worried that economic concerns might curtail shopping in the critical months ahead.
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Housing starts rebounded sharply in  July, making up almost all the ground lost in a June slump by  posting their largest monthly percentage gain since September  2002, a report from the Commerce Department on Tuesday showed.