U.S. consumer spending, which accounts for 70 percent of the economy, experienced positive growth in June – the fourth-straight month of its advance.
According to Commerce Department figures released on Tuesday, consumer spending grew +0.4% in June. Durable goods spending, adjusted for inflation, climbed +0.4% (following previous month’s +0.6 %). Household expenses on services, adjusted for inflation, rose 0.4 % (after a +0.1% increase in prior month).
Consumer spending’s strong advance corresponds with a solid labor market and lower taxes. Disposable income (i.e. income adjusted for taxes and inflation) increased by + 0.3% - the fastest in three months.