WASHINGTON (MarketWatch) - American consumers may say they are depressed about the economy, but they haven't stopped spending entirely.

For all the gnashing of teeth about a double-dip recession, July's data on individual incomes and spending don't show a collapse in the consumer sector, as many have feared.

Consumer spending rose 0.2% in inflation-adjusted terms in July to the highest level in two years, the Commerce Department estimated Monday. In the past year, real spending has risen 1.9%. See full story on the July consumer spending and income figures.

Encouragingly, Americans have increased their spending without dipping into their savings or taking on more debt. The savings rate has been relatively steady at around 6% of disposable incomes, much better than the 2% we were saving when the credit bubble was in full bloom five years ago.

That's not to say everything is hunky-dory.

American consumers aren't shopping without a care, as they usually do coming out of recessions. Wage growth has been tepid at best, and aggregate incomes are still too dependent on transfer payments from the government.

But progress can be seen in the data.

After years of acting irresponsibly, American consumers are slowly getting their lives together, reducing their debts and increasing their savings. The percentage of their disposable incomes that goes toward debt service is the smallest in 10 years.

Americans are relearning thrift, just when the broader economy could use a little irresponsible spending to supercharge the recovery. In the longer run, those habits of thrift will be a great benefit to the economy, but for now, it's keeping the economy growing only slowly.

-- Rex Nutting