- CNTV English - CCTV News

Homepage > News > Biz >

U.S. consumer spending up 0.4% in July

08-31-2010 08:37 BJT

WASHINGTON, Aug. 30 (Xinhua) -- U.S. consumer spending posted the largest increase in four months in July, primarily driven by a surge in auto sales, the Commerce Department reported Monday.

Consumer spending, which accounts for about 70 percent of the overall economy, rose 0.4 percent in July from a month earlier, while personal incomes increased 0.2 percent. Both consumer spending and personal incomes showed zero increase in June.

In addition, consumers' willingness to save seem to have retreated a little bit during the month, with savings rate dropping to 5.9 percent from 6.2 percent in June. Even with the July decline, the savings rate is nearly three times higher than it was before the recession began in December 2007.

July's gain in consumer spending exceeded a 0.3-percent rise economists had projected. Consumer spending remained sluggish in recent months, as consumers are more cautious in purchasing amid uncertain economic prospect and lackluster job growth. Instead, they are more inclined to save or trim their debt to repair balance sheets that were shattered during the recession.

The U.S. Commerce Department on Friday revised the economic growth to an annual rate of 1.6 percent in the second quarter of this year from an initially estimated pace of 2.4 percent. But consumer spending was revised upward to a growth rate of 2.0 percent, compared to the previously reported 1.6 percent.

"Consumers are reducing their debt and building savings, returning household wealth-to-income ratios near to longer-term historical norms, " Federal Reserve chairman Ben Bernanke said Friday at the Fed annual retreat in Jackson Hole, Wyoming.

"Stronger household finances, rising incomes, and some easing of credit conditions will provide the basis for more rapid growth in household spending next year."

Editor:Xiong Qu |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program