July 31 (UPI) -- Consumer spending increased in the United States by more than 5% last month for the second consecutive month, the Commerce Department said Friday.
The department said in its monthly report that U.S. spending, which accounts for two-thirds of total national economic activity, rose by 5.6%. Growth was 8.2% in May after spending declines of 13% in April and about 7% in March.
Friday's figure was largely in line with analysts' expectations.
"Within goods, the leading contributor to the increase was spending for clothing and footwear," the department said.
"Within services, the leading contributors to the increase were spending for healthcare as well as food services and accommodations."
With the new figures, inflation-adjusted consumer spending has erased a decline that began in April early during the COVID pandemic, but remains below its pre-outbreak level.
Friday's report said personal income was down just 1.1% for June after a loss of 4.4% the month prior.
The data was released one day after the department reported that the U.S. economy contracted by 33% during the April-June period, the worst second-quarter performance in U.S. history.