U.S. consumer spending rose a solid 0.4 percent in July, the sixth straight month of healthy gains. The July spending gain, fueled by strong job growth and tax cuts, followed a similar 0.4 percent rise in June, the government said Thursday. Economists are forecasting that GDP growth will slow slightly to a still solid 3 percent rate in the current quarter, supported by continued gains in consumer spending. "We are watching consumer spending like a hawk because the economy won't repeat the second quarter's 4.2 percent fast pace without the consumer spending more of their tax cut money," said Chris Rupkey, chief financial economist at MUFG Union Bank in New York. A gauge of core inflation rose 2 percent for the 12 months ending in July, up from a 1.9 percent year-over-year increase in June.

Source: ABC News August 30, 2018 12:40 UTC