News Summary: US consumer spending weak in July

AP News
Posted: Aug 30, 2013 3:44 PM

WEAK SPENDING: U.S. consumers barely increased their spending in July. Purchases rose just 0.1 percent, down from a 0.6 percent gain in June.

SMALL INCOME GAIN: Income grew just 0.1 percent in July. Overall wages and salaries fell $21.8 billion, held back in part by steep government spending cuts that reduced federal workers' salaries.

OUTLOOK: Consumer spending drives 70 percent of economic activity. Weaker spending led some economists to sound a more pessimistic note about economic growth in the current July-September quarter.