By Jeffry Bartash
WASHINGTON (MarketWatch) - Consumer spending in the U.S. rose in July at the fastest pace in five months, according to the latest government data. Spending rose 0.4% last month on a seasonally adjusted basis, the Commerce Department said Thursday. Personal income, meanwhile, rose 0.3% for the third straight month. The increases matched the forecasts of economists surveyed by MarketWatch. Since spending rose faster than income, the personal savings rate fell to 4.2% from a revised 4.3% in June. In addition, inflation as gauged by the core PCE price index rose less than 0.1% in July. The core PCE also rose less than 0.1%, indicating little inflationary threat in the U.S. economy. Spending for June and May, meanwhile, was little changed. Spending fell 0.1% in June and was flat in May.
