WASHINGTON (Reuters) Consumer spending rose at its fastest rate in five months in July, easing concerns that the economy was falling back into recession.
The size of the increase in spending beat economists forecasts for a 0.5 percent advance. When adjusted for inflation, spending was up 0.5 percent last month, the largest gain in 1 1/2 years and the first increase since April.
Its a little far-fetched to truly believe that we are headed into another recession. This data doesnt support that view at all, said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pa.
Good news for Obama?