Washington, DC, Sept. 1--U.S. personal spending rose 1 percent for a second month in July, as consumers jammed automobile dealer showrooms to take advantage of discounts, a government report showed.
The spending increase matched June's rise as the biggest since May 2004, the Commerce Department reported. Incomes rose 0.3 percent after a 0.5 increase the previous month.
The jump in spending pushed the personal savings rate to a record-low minus 0.6 percent from zero in June. The only other negative reading occurred in October 2001, when auto purchases jumped as manufacturers introduced zero-interest loans to promote sales following the terrorist attacks.
