Personal Incomes, Consumer Spending Increases Reported: U.S. Economy ...
AmericansÛª personal incomes rose a brisk 0.7 percent in July while consumer spending climbed at the fastest rate since April, the government said yesterday in another sign that the economy is growing much faster than was thought just months ago.</br></br>The Commerce Department said the rise in incomes, fueled by rapid growth in wages and salaries, was the biggest monthly gain since a 1 percent increase in March. The 0.7 percent increase in consumer spending last month was the fastest advance since a 1.2 percent rise in April.</br></br>The government also made significant revisions to previous months showing that income growth and consumer spending were not as sluggish as previously believed.</br></br>Analysts said the figures suggested that the Federal Reserve, which had been allowing interest rates to fall since early summer in hopes of stimulating the economy to grow faster, would delay further declines for at least a while.</br></br>Just a month ago, there were widespread fears that the nation was falling into recession as a series of government statistics showed weak growth.