US personal expenditures surged in July and personal income grew slightly less than expected, the US government reported today.
The US Commerce Department said consumer spending, which comprises about two-thirds of US economic activity, grew at by 0.8 per cent in the month, in line with expectations.
June personal spending was revised up to 0.6 per cent from 0.3 per cent.
Personal income grew 0.2 per cent in July, less than the 0.3 per cent growth rate expected by economists. The $350 billion tax cut boosted disposable personal income by 1.5 per cent, the Commerce Department said.Without the tax cut, disposable income would have gained only 0.2 per cent, the government said.