WASHINGTON, Aug 29 - U.S. personal expenditures surged in July, the government said on Friday, supplying further evidence of a solidifying economic recovery, although personal income grew slightly less than expected. The Commerce Department said consumer spending, which comprises about two-thirds of U.S. economic activity, grew at by 0.8 percent in the month, in line with expectations of analysts polled by . June personal spending was revised up to 0.6 percent from 0.3 percent. Personal income grew 0.2 percent in July, less than the 0.3 percent growth rate expected by economists.
The $350 billion tax cut boosted disposable personal income - personal income after taxes and other bills -- by 1.5 percent, Commerce said. Without the tax cut, disposable income would have gained only 0.2 percent, the government said.//