According to estimates, the total consumer spending rose 0.3 per cent during the month of August in the United Sates indicating that the consumer market is gradually recovering.

The rise in consumer spending is forth in a row as rising incomes helped boost in the largest part of the US economy. According to the Commerce Department reported today in Washington, the total household purchases, which accounts for about 70 per cent of the economy rose 0.3 per cent after a revised rate of 0.2 per cent recorded during the month of July, which is higher than earlier estimated.

The rise in the month of August is same as the median forecast of economists in a Bloomberg survey as income rose 0.4 per cent, which is its highest in six months. The rise in consumer spending comes as rising home values and stock market addressed the efforts of payroll tax increase. The rise comes after a slowdown in second quarter of the year. Experts have said that the consumer spending is still low as the households wait for better employment situation in the US economy.

The Thomson Reuters/University of Michigan's final index of consumer sentiment fell to 77.5 from an August reading of 82.1.