Consumer Spending Rose 0.3 Percent in July

(CN) — Consumer spending rose 0.3 percent in July, the fastest pace in three months, while incomes grew by the largest amount since February, the Commerce Department reported Thursday.

The jump in consumer spending last month followed 0.2 percent advances in both May and June, the department said.

Incomes in June grew 0.4 percent, the best showing since February.

The report on incomes and spending also showed that the saving rate in July slipped to 3.5 percent of after-tax income, the lowest level since it stood at 3.2 percent last December.

The report had an immediately effect on stock prices, which were rising on Thursday.

As of midday, health care companies were making some of the biggest gains, along with technology companies and retailers.