Consumer spending grew 0.4% in July, the sixth straight month of gains, while the Federal Reserve's preferred measure of inflation reached a six-year high of 2.3% annualized gain, according to the Bureau of Economic Analysis.

Why it matters: The strong spending numbers indicate that consumers are continuing to drive growth, as personal consumption expenditures (PCE) account for 70% of the U.S. economy, per Bloomberg. Inflation was slightly higher than the Fed's target threshold of 2%, all but guaranteeing that it will continue with its plan to gradually raise interest rates.