U.S. personal spending rose in July, another sign of booming economy

Aug. 30 (UPI) -- Personal spending rose in July, a sign that the economy's positive momentum is continuing, the U.S. Commerce Department announced Thursday.

The biweekly report from the Bureau of Economic Analysis said personal spending in July rose a seasonally adjusted 0.4 percent over June, while personal income rose 0.3 percent. The price index for personal-consumption expenditures, the Federal Reserve's preferred statistic for measuring inflation, grew only 0.1 percent in July. Core prices, which are personal expenditures minus the cost of volatile energy and food prices, grew 0.2 percent.

The increased spending implies higher prices for goods and services, a sign of economic strength, the Wall Street Journal reported.

The figures suggest the economy, two-thirds of which is reflected in consumer spending, has momentum as it heads into the fourth quarter.

Earlier this week the government reported growth at a 4.2 percent rate in the second quarter. Some economists expect three-percent growth in the third quarter because of low unemployment, slowly rising incomes and a thriving stock market.