WASHINGTON — The U.S. July personal income report was a little weaker than anticipated but still points to a turn-around to positive growth in the third quarter, largely reflecting big-ticket spending induced by government rebates.

July personal income was flat after a large 1.1% drop in June, personal consumption expenditures advanced 0.2%, and core PCE prices grew 0.1% for a 1.4% increase over the year. Real PCE was also up 0.2%, which indicates consumption will start the third quarter positive.

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