While the employment situation continues to be an issue for many Americans, those who are working saw income levels rise moderately last month, according to the latest report issued by the Bureau of Economic Analysis.
Total personal income in July reached approximately $42 billion, with disposable earnings accounting for $32 billion of that total, a 0.3 percent increase when compared to June. In addition, private wage and salary disbursements increased $24 billion last month, a sharp rise from June's $8.9 billion increase.
As salaries rose, so too did consumer spending, which was up approximately 1 percent compared to the previous month.
"At the moment, the economy is back on its feet after the temporary soft patch caused by $4 gasoline earlier this year," said Chris Rupkey, a U.S. economist at Bank of Tokyo Mitsubishi, in an interview with the Wall Street Journal.
Vehicle purchases accounted for much of the increase.
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