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ATLANTA -- Aided in part by the government's "cash for clunkers" program, consumer spending showed a slight increase for July, rising 0.2 percent and meeting economists' expectations, according to the U.S. Commerce Department's Bureau of Economic Analysis. The slight gain follows the 0.6-percent increase in June.
However, personal income remained relatively flat, increasing less than 0.1 percent in July, after decreasing 1.1 percent in June. Analysts had expected a 0.2-percent gain in income.
"During the first half of the year, 95 percent of working families have seen the benefits of the Making Work Pay tax credit in their paychecks because of the Recovery Act, which has boosted Americans’ disposable income," said Rebecca Blank, the U.S. Commerce Under Secretary for Economic Affairs. "This increase has helped stabilize economic conditions in the wake of the worst economic environment in generations."
-- Nielsen Business Media