U.S. households ramped up their spending in July, providing reassurance that the economyâ€™s decadelong expansion continued to roll despite slowing factory activity and global growth.
Personal-consumption expenditures, a measure of household spending, increased a seasonally adjusted 0.6% in July from June, a pickup from the previous two months, the Commerce Department said Friday, continuing a solid performance by the economyâ€™s main driving force.
â€śThe consumer is still very sturdy and providing fundamental strength to the overall economy,â€ť said Jack Kleinhenz, chief economist at the National Retail Federation. â€śAs long as we see a strong job market…the direction of the economy continues to be on track: positive but slowing.â€ť
The prospects for continued strong spending ahead are less clear. Consumer sentiment fell in August, posting its largest drop since 2012, the University of Michigan said Friday. Richard Curtin, the surveyâ€™s chief economist, attributed the decline to Americansâ€™ concerns about tariffs.View Article