INSTANT VIEW: Consumer spending rises slightly in July

NEW YORK (Reuters) - U.S. consumer spending rose as expected in July, data showed on Friday, lifted by the government's "cash-for-clunkers" program that fueled demand for autos.

KEY POINTS: * The Commerce Department said spending rose 0.2 percent after increasing by a revised 0.6 percent in June, previously reported as a 0.4 percent gain.

* Analysts polled by Reuters had forecast spending, which accounts for about 70 percent of U.S. economic activity, rising 0.2 percent in July. Adjusted for inflation, spending was up 0.2 percent after gaining 0.1 percent in June.

COMMENTS:

VASSILI SEREBRIAKOV, CURRENCY STRATEGIST, WELLS FARGO, NEW YORK:

"They were practically all spot on market expectations. Personal spending is higher, probably in large part due to the Cash for Clunkers program. I don't think there's that much of a surprise. That's why we're not seeing major moves in the currency market at this point."

CRAIG HESTER, CEO, HESTER CAPITAL MANAGEMENT, AUSTIN, TEXAS:

"The personal income number continues to reflect the anemic

job market that we're facing in the U.S. We're still destroying jobs, not creating them, and that's going to pressure personal income for a while.

"As for inflation, we don't see the number as a big surprise. We don't think inflation will be something we'll have to worry about until the economy gains traction. We think that for the balance of this year, we'll have other things to worry about, but down the road, because of the amount of money the government has put into the economy, we'll have inflation issues later."

DAVID RESLER, CHIEF ECONOMIST, NOMURA SECURITIES INTERNATIONAL, NEW YORK:

"It looked pretty close to what we expected. It looks like we ended the quarter a little bit higher than we thought, and this is three straight months of increases in inflation-adjusted consumer spending so I think that puts us in pretty good stead for an upturn in consumer spending in the third quarter. That's what we expect. We don't expect a big rise, but growth in the neighborhood of one percent or so in consumer spending for the third quarter will be an important element of an expected turnaround from decline to growth."

MARKET REACTION: STOCKS: U.S. stock index futures trimmed gains. BONDS: U.S. Treasury debt prices reduced losses. DOLLAR: U.S. dollar gained slightly against the euro.