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Cars boost U.S. consumer spending in July

Staff Writer |
U.S. consumer spending increased for a fourth straight month in July amid strong demand for automobiles, the Commerce Department said.

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The Commerce Department said that consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.3 percent last month after a 0.5 percent gain in June.

When adjusted for inflation, consumer spending also rose 0.3 percent in July after advancing 0.4 percent in June.

That suggests consumer spending retained much of its momentum from the second quarter, when it grew at a 4.4 percent annual rate, the fastest pace in nearly two years.

The jump helped to mitigate some of the impact of a sharp inventory drop and prolonged business investment downturn.

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