US Consumer Spending Exceeds Expectations in July

US consumer spending increased more than expected in July, bolstering expectations of strong economic growth recovery in Q3, although the momentum will likely subside as the Covid-19 pandemic continues and the impact of the fiscal stimulus dissipates.

The US Commerce Department said consumer spending, which accounts for more than two-thirds of US economic activity, increased 1.9% last month, after jumping 6.2% in June.

Economists polled by Reuters had expected consumer spending to rise 1.5% in July.