Consumer Spending Inches Up in July

WASHINGTON (TheStreet) -- Consumer spending saw another increase in July, albeit a marginal one.

The Commerce Department announced on Friday that consumer spending edged up 0.2% in July, in-line with economists' expectations. This follows a 0.6% gain in June.

Investors appear to think the slight increase is worthy of excitement, as shares of retailers were mostly in the green in early trading.

The gain was mostly attributable to a 1.3% rise in purchases of durable goods like cars, propelled by the "cash for clunkers" program that started at the end of July.

But sales of apparel still remained weak, falling 0.3%.

Personal incomes remained unchanged, weaker than the 0.2% jump expected.

With incomes flat in July and spending up, the personal savings rate dipped slightly to 4.2% during the month from 4.5%. The savings rate was 2.6% a year ago.

Shares of Saks(SKS Quote) jumped 2% to $6.49, Pacific Sunwear of California(PSUN Quote) soared 10% to $4.28, J.Crew(JCG Quote) increased 7% to $35.14 and Tiffany(TIF Quote) received an 8% boost to $36.68.

-- Reported by Jeanine Poggi in New York