Americans are spending more money.

FOX News Radio's Rachel Sutherland reports from Washington.

Retail sales rebounded in July, as people bought more vehicles and other goods. The Commerce Department says retail spending increased 0.6 percent in July.

June's retail sales were revised upwards to show them unchanged, instead of the previously reported 0.3 percent drop.

The upbeat report should strengthen expectations of a Federal Reserve interest rate hike as early as next month.

In Washington, Rachel Sutherland, FOX News Radio.