Consumer spending keeps on rising

The rate of consumer spending has risen for four months in a row in July as wage increases have helped to increase the number of spending in households. Since 2013 there has been a steady increase in American's income levels which has surged by 7.7%. A lot of gains in spending were made through the buying of vehicles and other hard goods. Since spending increased in the month of June by 0.5%, it was up by 0.3% in July and the rate for personal savings stood at 0.2%. The increase in consumer spending in the last month comes in contrast to businesses who implemented cuts in their budgets since late last year. Some factors that might be responsible for anxiety among businesses include the presidential election together with a stronger dollar, a decrease in global trade and a decrease in corporate revenue.

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Economy