Reports Portray a Sluggish Economy
ALTHOUGH CONSUMER INCOME ROSE 0.7 PERCENT IN JULY, SPENDING ROSE ONLY 0.2 PERCENT, INDICATING ECONOMIC SLUGGISHNESS</br></br>The income of Americans rose in July more rapidly than it has in six months even as consumer spending leveled off, while plunging factory orders, due largely to auto plant shutdowns, suggested the economy has not shaken off its sluggishness.</br></br>: A flurry of July data painted a Clouded picture of national economic activity at the start of the yearÛªs second half. Analysts said an expected 'rebound probably will be modest but emphasized that consumers hold the key through their spending decisions.</br></br>The Commerce Department reported yesterday that summertime hiring at restaurants and other retail establishments helped boost personal income 0.7 percent in JulyÛÓthe biggest increase since an 0.8 percent gain in January. Service industry payrolls soared at a rate that was nearly double JuneÛªs increase.'</br></br>But the Commerce Department also said spending advanced just 0.2 percent last month, the slowest pace since it was unchanged in April.