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Latest Business News

Stocks Rise on Consumer Spending

Friday, June 29, 2007 9:37:06 AM
By JOE BEL BRUNO

NEW YORK (AP) - Stocks advanced Friday, the last day of the second quarter, as investors welcomed reports showing rises in consumer and construction spending.

The Commerce Department said Friday that construction spending in May climbed 0.9 percent, the largest jump in nearly 1 1/2 years, boosted by big government and commercial projects that offset the nation's weak residential market.

Earlier Friday, the Commerce Department had reported that consumer spending rose by 0.5 percent for the second month in a row. Incomes, which fuel future spending, rebounded in May by 0.4 percent after falling 0.2 percent in April. The latest snapshot of consumer behavior was a bit weaker than economists were expecting, but it showed that consumers were largely shrugging off higher gasoline prices.


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