Consumer spending took a dip last month, against the expectations of most analysts.
The drop in consumer spending, which accounts for more than two-thirds of economic activity, came after the Conference Board found a seven-year high in consumer confidence this week.
But the Conference Board and other groups tracking consumer sentiment have found most of the optimism is more about long-term trends, and wage growth remains somewhat stagnant. The University of Michigan reported Friday that confidence was highest among the wealthiest as well.
The Commerce Department also said Friday that personal income rose 0.2 percent in July, less than the 0.5 percent increase in June.