July consumer spending growth eases fears

Consumer spending grew in July by 0.8 percent, the largest amount in five months. That followed a decline in June and helped ease fears the U.S. economy is on the verge of another recession. Americans bought more cars and spent more last month to cool their homes.

Personal incomes increased 0.3 percent last month, the Commerce Department said Monday, slightly higher than the modest 0.2 percent in June, the weakest growth in seven months.

Economists said the spending report was a strong sign that the economy rebounded in July after growing at an annual rate of just 0.7 percent in the first half of the year -- the slowest pace since the recession officially ended two years ago. -- AP