Is Consumer Spending Still on the Rise?
Both the housing and labor markets improved last month, and consumer spending most likely rose in July for the third consecutive month. According to Bloomberg, economists have forecast that the consumer spending increased 0.3 percent in July. It had already increased 0.5 percent in June. Figures from July will be released at the end of this month.
At least part of the likely increase in consumer spending is tied to the improved housing market. Home improvement stores, such as Home Depot (NYSE:HD) and Lowe’s Companies (NYSE:LOW) reported higher sales of appliances and home improvement supplies.
Robert Niblock, CEO of Lowe’s, said that Americans have started buying more expensive items, such as washers and dryers. These were items that they put off buying during the recession, but now have decided to as home prices have started rising, increasing the worth of their homes.