U.S. consumer spending rose eight-tenths of a percent in July, the largest gain in about five months.

Monday's data comes from the Commerce Department.

Investors found the newest report encouraging because spending dropped slightly in the previous month.

Economists watch consumer spending closely because consumer demand drives about 70 percent of U.S. economic activity.

News reports say President Barack Obama will choose a new person Monday to head his Council of Economic Advisors. He is said to be Alan Krueger, of Princeton University and an expert in labor issues.

He would replace Austan Goolsbee, who resigned recently.