Consumer Spending in U.S. Advances for Fourth Consecutive Month

Consumer spending advanced for a fourth straight month in July, bolstered by stronger income gains, sending the biggest part of the U.S. economy to a solid third-quarter start, Commerce Department figures showed Monday in Washington.

The figures support economists’ projections that economic growth will rebound this quarter after the weakest first half since 2011. Adjusted for inflation, a 0.3 percent advance in July purchases followed an upwardly revised 0.4 percent gain in the previous month, indicating a better start to the third quarter. Ian Shepherdson at Pantheon Macroeconomics said in a note to clients that spending this quarter may rise 3 percent after a robust 4.4 percent second-quarter surge. A solid August jobs report would further boost expectations for Federal Reserve policy makers to raise interest rates as soon as next month.