Personal income is up, and so is spending

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."

0:00/4:12Giddis: '40% chance of a double dip'

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. 

Problems spotted in economic revivalGDP