U.S. Consumer Spending Rose More Slowly in July

Shoppers at the Destiny USA mall in Syracuse, N.Y., in July.

Photo: Maranie Staab/Bloomberg News

U.S. consumer spending rose more moderately in July than in prior months, as incomes climbed and the labor market continued to add jobs.

Personal consumption expenditures, a measure of household spending on everything from haircuts to new cars, increased a seasonally adjusted 1.9% in July from the prior month, the Commerce Department said Friday.

Personal income, reflecting Americans’ pretax earnings from salaries and investments, government benefits and other sources, rose 0.4% in July.

The pace of spending in July marked a slowdown from the previous two months when it rebounded strongly after collapsing during the coronavirus-related shutdowns of parts of the economy. Consumer spending rose a revised 6.2% in June and 8.6% in May after falling 12.9% in April.

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