Despite a potentially looming crisis in the financial markets, Americans earned and spent more in July, the Commerce Department reported Friday.

While personal income rose by 0.5 percent, up from 0.4 percent in June, spending rose by 0.4 percent, up from 0.2 percent. Both gains exceeded Wall Street expectations. Services-producing industries led the rise in private wages and salaries, with payrolls increasing by $25.7 billion, compared to $23.5 billion the previous month.

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