(AP) - WEAK SPENDING: U.S. consumers barely increased their spending in July. Purchases rose just 0.1 percent, down from a 0.6 percent gain in June.
SMALL INCOME GAIN: Income grew just 0.1 percent in July. Overall wages and salaries fell $21.8 billion, held back in part by steep government spending cuts that reduced federal workers' salaries.
OUTLOOK: Consumer spending drives 70 percent of economic activity. Weaker spending led some economists to sound a more pessimistic note about economic growth in the current July-September quarter.
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