After three lackluster months consumer spending rose .4 percent in July, the U.S. Commerce Department said Monday.

A jump in demand for automobiles accounted for the July spending gain.

Still, analysts caution demand could taper in the second half of the year.

Brad McAreavy, President of Rochester Automobile Dealers Association, said car sales in Monroe County are up 4.6 percent through July compared to the same time period last year.

Used car sales, McAreavy said, are the same.

The price for used cars however has gone up considerably, 10 to 30 percent in some cases according to Edmunds.com.

The reason is two-fold, McAreavy said manufacturer supply is down and a Senior Analyst for Edmunds.com said consumers still have a lack of confidence in the economy.

Until the job market and housing market truly pick up, George Cook, Executive Professor of Business Administration at U of R’s Simon School of Business, predicts consumers will remain frugal.

Edmunds Inc.
Simon Graduate School of Business
Rochester Automobile Dealers Association