Official figures show that US consumer spending rose at its fastest pace in five months in July, supporting views that the country's economy is not falling back into recession. The Commerce Department said consumer spending increased 0.8%, helped by strong demand for motor vehicles, after slipping 0.1% in June. Economists had expected spending, which accounts for about 70% of US economic activity, to rise 0.5%. When adjusted for inflation, spending rose 0.5% last month, the largest gain since a matching increase in December 2009, after being flat in June. The data were the latest to suggest the US economy started the third quarter with some strength after growth almost stalled in the first half of the year. It also offered hope that output would continue to expand, though at a moderate pace. However, the risks of a new recession have risen following a sharp drop in share prices and the erosion of consumer sentiment. US industrial production, retail sales and employment data have so far been consistent with a slow economic growth scenario rather than an outright contraction in output. Real spending on durable goods increased 2% last month, probably reflecting a pick-up in motor vehicle sales as the shortage of cars caused by the supply disruptions from Japan eased. Overall spending in July was lifted by a 0.3% rise in income as employers stepped up hiring. Income rose 0.2% in June. Disposable income increased 0.3%, but when adjusted for inflation fell 0.1% - the first decline since September. The report also showed inflation pressures remain high. The personal consumption expenditures price index, or PCE, rose 0.4% after slipping 0.1% in June. Compared with July last year, the index was up 2.8%, the largest increase since October 2008, after advancing 2.6% in June.