Consumers rebounded in July to boost spending by the most in five months. The increase is likely to ease fears that the U.S. economy is on the verge of another recession. The Commerce Department says consumer spending rose 0.8% in July. That followed the first decline in spending in 20 months. Personal incomes increased 0.3% last month. That’s slightly higher than the modest 0.2% in June, the weakest growth in seven months. The first look at spending in the second half of the year gave Wall Street an early lift. Stock futures rose after its release. It added to positive reports that Hurricane Irene didn’t do as much damage as anticipated. Consumer spending figures are important indicators of U.S. economic health because what consumers spend accounts for much economic activity. Strong spending in July is the latest sign that the economy rebounded this summer after anemic growth in the first half of the year.
Consumer spending rebounds, rose 0.8% in July
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