US and Japanese consumer spending rise in July

US consumer spending rebounded in July. Reuters reports:

Consumer spending increased 0.8 percent on strong demand for motor vehicles as Japan-related supply restraints faded, a Commerce Department report showed on Monday. Spending had slipped 0.1 percent in June.

Prices also rebounded though, the PCE price index rising 0.4 percent in July after falling 0.1 percent in June.

Personal income lagged both spending and inflation in July, resulting in real disposable income falling 0.1 percent.

Among other US data, the Texas factory index fell to 1.1 in August from 10.8 in July, while a business confidence gauge fell to -11.4 from -2.0. Pending home sales declined 1.3 percent in July.

Investors appear to have focused on the positive. US stocks rose strongly on Monday, the S&P 500 rising 2.8 percent to 1,210.08.

Japanese consumer spending also improved in July. Data released today show that household spending fell 2.1 percent in July from a year earlier in real terms but rose 0.7 percent from June.

Less encouragingly, Japan's jobless rate rose to 4.7 percent in July from 4.6 percent in June.