Consumer spending rose 0.8 percent in July, the Commerce Department reported, as strong demand for motor vehicles led the strongest gain in the consumer market in five months and provided a boost for a slumping American economy.
Consumer spending accounts for 70 percent of U.S. economic activity and is a leading driver of containerized imports and intermodal traffic. The Aug. 29 report comes after a survey found U.S. consumer sentiment in August hit its lowest point in 33 months.
Consumer spending fell 0.2 percent in June and rose 0.1 percent in May, according to the Bureau of Economic Analysis. Personal income inched up 0.1 percent in July.
Wage and salaries in July grew $24.3 billion in July against an increase of $8.9 billion in June. Goods-producing industries’ payrolls in July increased $3.7 billion, compared with a $300 million decrease the month before.
Manufacturing payrolls grew $3.6 billion last month against a $900 million decrease in June.