Latest News

Economic Report: Consumer spending slows in July, but U.S. economy still has plenty of juice

The numbers: Americans spent money at a slower pace in July as delta nipped at the economy, but households are flush with savings and consumer still show a strong appetite for a wide variety of goods and services.

Consumer spending rose by a modest 0.3% last month, the government said Friday. That matched the estimate of economists polled by The Wall Street Journal.

Spending has slowed since early spring, when Washington delivered more stimulus money for households. Yet it’s still rising fast enough to sustain a rapid economic recovery.

Incomes increased 1.1% last month.

Big picture: The U.S. economy is still going strong even though government stimulus has faded and coronavirus cases are rising again.

Consumers feel more secure in their jobs and they have plenty of cash to spend. Companies are trying to hire to fill a record number of job openings and ramp up production. And governments are refraining from tough business restrictions they used earlier in the pandemic.

Read:Businesses still upbeat even as Delta deals small blow to economy

The U.S. economy is forecast to grow at a 7% annual pace in the current third quarter, following a 6.6% increase in the spring.

Market reaction: The Dow Jones Industrial Average
DJIA,
-0.54%

and S&P 500
SPX,
-0.58%

were set to open higher in Friday trades.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News