US Consumer Spending |Continues to be Strong

(CN) - American consumers stepped up their spending in June, pushing the spending rate up a strong 0.4 percent, the third straight month of increases despite a slowdown in the purchase of new cars.

Consumer spending also rose 0.4 percent in May, following a 1 percent gain in April, the Commerce Department said Tuesday.

Personal income also grew in June, rising 0.2 percent in June, the same it had been in May.

After the numbers were released, several analysts said the number suggest the U.S. economy should see solid growth through the end of the year.

With spending up in June at a faster pace than incomes grew, the saving rate slipped to 5.3 percent of after-tax income, down from 5.5 percent in May.

The June figure was the smallest since an identical 5.3 percent in March 2015.

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