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Economic Report: Consumer spending rises 0.4% in June, stays on hot streak

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Shoppers are keeping the U.S. economy alive.

Consumers boosted spending by 0.4% in June — the third straight strong increase — in a good sign for the economy. But they’ve also been saving less to fund their purchases.

The increase in June matched Wall Street expectations. Economists polled by MarketWatch had forecast a 0.4% gain.

Spending in the three months from April to June marked the biggest quarterly gain since the seven-year-old recovery began in mid-2009.

Higher spending also underpinned a 1.2% increase in gross domestic product in the second quarter and prevented growth from turning negative.

It also bodes well for the rest of the year: consumers account for 70% of economic activity, and fueled by rapid hiring and slowly rising wages, they are likely to keep the U.S.

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