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U.S. Consumer-Spending Rebound Cools, Hinting at More Risk Ahead

  • Personal incomes rise, compared with projections for drop
  • Report marks tempering in economic recovery after quick gains
A sales associate carries a shopping bag from an appointment only open-air boutique suite inside The Pavilion at South Coast Plaza in Costa Mesa, California, on Aug. 11.
A sales associate carries a shopping bag from an appointment only open-air boutique suite inside The Pavilion at South Coast Plaza in Costa Mesa, California, on Aug. 11.Photographer: Patrick T. Fallon/Bloomberg
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The rebound in U.S. consumer spending slowed in July amid a surge in virus cases, and now faces another roadblock after the government cut unemployment benefits.

Household outlays rose 1.9% from the prior month following an upwardly revised 6.2% rise in the prior month, a Commerce Department report showed Friday. That compared with economists’ estimates for a 1.6% gain. Personal incomes rose 0.4%, topping expectations for a slight decline.