Consumer spending rebounds in July

Consumer spending rose 0.4 percent in July over June, posting the sharpest gain in five months, the U.S. Commerce Department said Thursday. Adjusted for inflation, spending also rose 0.4 percent, after dropping 0.1 percent in June and coming in flat in May. Incomes rose 0.3 percent, or $42.3 billion, after rising 0.3 percent in May and June. Disposable incomes adjusted for inflation rose 0.3 percent after a rise of 0.2 percent in June and a gain of 0.5 percent in May. Private wages and salaries rose by $16.1 billion in July after rising $4.1 billion in June. With spending rising faster than incomes, the savings rate declined from 4.3 percent to 4.2 percent.