In the recent days there was much talk about an alleged double-dip recession in the U.S.. But the doom & gloom fueled by some notorious fear mongers doesn`t have a foundation. The hard data show that the motor of the economy is still running smoothly.
Today the U.S. Commerce Department reported that the consumer spending grew in July by 0.8 %. Consumer spending is very important because it accounts for 70 percent of economic activity.
The Commerce Department also told that personal incomes increased 0.3% last month. That is an encouraging number. In spite of the sluggish job market the majority of the Americans enjoys rising incomes. This should fuel the consumer spending in the fall.