NEW YORK (CNNMoney.com) -- Personal income rose 0.5% in August, the largest increase this year, while spending by individuals remained steady, according to a government report released Friday.
Personal income increased $59.3 billion, or 0.5% last month, the Commerce Department said. That's more than the 0.3% rise economists expected.
While that's good news for the economy, the rise in income comes primarily from an increase in agriculture revenue and unemployment benefits, according to Robert Dye, a senior economist at PNC Financial Services Group.
But Dye added that the numbers help put to rest fears of a double-dip recession.
"These are moderate numbers consistent with a half-speed recovery," Dye said. "We are starting to gain economic momentum and that should continue through the end of the year."
Meanwhile, spending by individuals rose $41.3 billion, or 0.4%, matching the gain from the previous month. That's another indication that the "soft patch" hit during the second quarter is coming to an end, Dye said.
A consensus of economists polled by Briefing.com expected personal spending to climb 0.3% in August.
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