Personal Spending Rises 1% in July; Incomes Up 0.3%

ersonal spending jumped 1% in July as consumers continued to take advantage of automakers’ discounts, the Commerce Department reported Thursday.

The spending gain matched June’s rise as the biggest since May 2004, Commerce said. June’s rise was originally reported at 0.8%.

An increase in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.

Analysts had predicted spending would rise 1% and incomes by 0.5%, Bloomberg reported.

Inflation-adjusted spending on durable goods including autos rose 5.2% after a 4.6% the month before. Spending on services, which account for about 60% of all purchases, rose 0.2% following a 0.4% gain.