US consumer spending rises for fourth straight month

Consumer spending in the United States rose in July for the fourth straight month amid strong demand for cars including refers to the acceleration of economic growth, which may allow the Federal Reserve (US Fed) to raise interest rates this year.

Data to the US Department of Commerce showed that consumer spending, which accounts for more than two-thirds of economic activity, increased 0.3 percent last month after rising 0.5% after the upward revision in June.

The increase in July compatible with the expectations of economists. The preliminary estimates indicate an increase in spending of 0.4% in June.

After the amendment in light of the inflation rate in consumer spending increased 0.3% in July after rising rate of 0.4% in June.

It seems that consumer spending maintained some strength gained in the second quarter, while increased at an annual rate of 4.4%, recording the fastest pace of growth in nearly two years.

And this contributed to the jump to dispel some of the impact of the sharp fall in inventories and continuous decline for a long time in business investment.

The US economy grew by 1.1% in the second quarter.

It joined consumer spending data for the month of July to reports of a deficit in the trade of goods and industrial production and durable goods orders and the construction of housing units referred to the acceleration of economic growth at the beginning of the third quarter.

An estimated Federal Reserve Bank in Atlanta is currently the arrival of GDP growth in the third quarter year on year increase of 3.4%.

In the last month, few signs of the existence of inflationary pressures even as consumer spending did not show up.

And increased personal consumption, which excludes volatile food and energy prices rose 0.1%, after rising by a similar amount in June expenditures price index.

Over the 12 months to July core personal consumption expenditures price index rose 1.6%. And it increases the index in the same proportion month since March / March.

The Fed prefers core personal consumption expenditures price index measure of inflation and the index remains below the level targeted by the central and the 2%.

Consumer spending rose last month, with the support of the high rate of 1.6% in purchases of durable manufactured goods such as cars. And increased spending on services 0.4%, while the decline in spending on durable Asalagar 0.5%.

Personal income rose 0.4% in July after rising 0.3% in June. The wages and salaries rose 0.5%, while savings increased to 794.7 billion dollars from 776.2 billion in June.