Consumer Spending Flat In June
July 31, 2012 by UPI - United Press International, Inc.
WASHINGTON (UPI) — Consumer spending was essentially flat for the second consecutive month in June, the U.S. Commerce Department said Tuesday.
Adjusted for inflation, spending was down 0.1 percent, after rising 0.1 percent in May and 0.2 percent in April.
Incomes rose 0.5 percent, or $61.8 billion, after rising 0.3 percent in May.
Economists expected incomes to rise 0.4 percent, while spending was expected to rise 0.1 percent.
Private wages and salary disbursements rose by $31.9 billion in June after rising $9.7 billion in May.
The department said the closely watched core consumer prices, which excludes food and energy items, rose 0.2 percent in June after rising 0.1 percent in May.
With incomes rising faster than spending, savings rose from $472.4 billion in May to $529.5 billion in June. The personal saving rate rose to 4.4 percent in the month from 4 percent in May.