U.S. Consumer Spending, Incomes Signal Stable Second-Half Start

U.S. consumer spending increased by less than estimated in July, though rising incomes and an upward revision to June purchases put the economy on a stable footing for the second half, Commerce Department figures showed Thursday.

The steady gains in consumption, which accounts for about 70 percent of the economy, reflect robust hiring, healthier finances and low inflation. They also signal consumers will keep driving the expansion, though recent reports show economic growth may be broadening out to include a pickup in business investment.