US consumer spending increased solidly in July, suggesting the economy remained on firmer ground early in the third quarter and arguing against a half-percentage-point interest rate cut from the Federal Reserve next month. The report from the Commerce Department on Friday also showed prices rising moderately last month, curbing inflation.
A jump in the unemployment rate to a near three-year high of 4.3 per cent in July stoked fears of a recession, leading financial markets and some economists...