US consumers spend less than forecast in July

(US shoppers barely spent in July amidst concerns over federal spending cuts and increasing interest rates)

US consumers barely increased their spending in July, as workers saw their salaries shrink because of government spending cuts.

Spending increased by 0.1%, according to the US Commerce Department.

Big-ticket items, such as cars and fridges, saw the biggest declines.

Consumption makes up 70% of the economy, and the run-up to the new school year, starting in July, is typically the second-biggest shopping period of the year.

Read more... Large retailers such as Wal-Mart, Macy's and Kohl's have warned in recent earnings reports of sluggish consumer demand