U.S. consumer spending accelerated to its fastest pace in six months during July as Americans bought more goods and services.
Spending, which accounts for more than two-thirds of the country’s economic activity, grew by 0.8% last month, the U.S. Commerce Department reported.
June’s data was revised up to show an increase of 0.6% instead of the previously announced 0.5%.
“The economy picked up momentum early in the third quarter. Spending is supported by a tight labor market, while initial claims for unemployment benefits unexpectedly fell last week,” the U.S. Commerce Department said.
“Demand is on fire and inflation is cooling. Now we ask, how long can inflation keep coming down with such strong consumer spending?” Christopher Rupkey, chief economist at FWDBONDS,
