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A gauge of US 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 US Federal Reserve winding down a major economic stimulus programme.
Other data on Tuesday showed US small business optimism improving in July, while import prices rose less than expected during the month and inventories at US businesses were flat in June. Retail sales outside of cars, gasoline and building materials rose 0.5 per cent last month, the Commerce Department said. July's gain in core retail sales was the largest since December, and suggests the economy could be regaining steam after tax hikes and federal budget cuts dragged on growth in the first half of the year.
Overall retail sales rose 0.2 per cent, just below analysts' forecasts.
