Consumer spending slows in July

Consumers in the U.S. hardly increased their spending in July...up just +.1%. In June, the growth was +.3%. Contributing was the slower growth of incomes affected by deep government spending cuts affecting federal workers. Over all, wages and salaries dropped -$21.8 billion from June. This slowdown in consumer spending suggests the 3rd quarter's growth may be slower than expected. Consumer spending makes up about 70% of economic activity, and plays the major role in economic growth.