U.S. Consumer Spending Rises at Fastest Pace in Seven Months

U.S. consumer spending rose in July at its fastest pace in seven months—a sign of quicker economic growth that could strengthen the case for the U.S. Federal Reserve to wind down a major economic stimulus program. Other data on Tuesday showed increased optimism among small businesses in July, while import prices increased at a lower rate than expected during the month. July’s gain was the biggest since December and suggests the economy could be regaining steam after tax hikes and federal budget cuts delayed growth in the first half of the year.