Consumer Spending Hits Five Month High in July

Washington, DC, Aug. 29, 2011 -- Consumer spending in July increased at the fastest rate in five months.

The Commerce Department said on Monday that consumer spending rose 0.8% on strong sales of cars and trucks.

Economists had expected spending to rise 0.5%.

Meanwhile, Americans' personal incomes rose 0.3% in July, the government said.

Also, disposal income adjusted for inflation fell 0.1%, marking the first decline in 10 months

The spending data was the latest to suggest the economy started the third quarter with some strength after growth almost stalled in the first half of the year.