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Consumer spending rebounds in July while factory orders post the biggest gain in four months

Consumer spending rebounds in July while factory orders post the biggest gain in four months

Americans returned to the malls in July after taking a breather in June, although worries about the future could make the rebound short-lived.
The Commerce Department reported Friday that 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, the best showing in this area in four months.
The gain in spending was right in line with expectations, while the increase in incomes was double what analysts had expected. However, economists cautioned that the July increases could be temporary given recent weakness in consumer confidence caused by a prolonged slump in housing and the past several weeks of financial market turbulence.
In another strong report, the Commerce Department said that orders to factories jumped by 3.7 percent in July, even better than the 3.3 percent increase that had been expected. The increase, which followed three months of lackluster gains, was led by an 11 percent jump in demand for transportation goods, including the biggest leap in orders for cars in more than four years.


Updated : 2021-07-24 19:12 GMT+08:00