WASHINGTON, Aug. 2 (UPI) — Consumer spending dropped 0.2 percent in June, a clear indication the U.S. economy is sputtering, The Bureau of Economic Analysis said Tuesday.
Consumer spending is often cited as making up 70 percent of the nation’s gross domestic product, which the government said last week rose by only 1.3 percent in the second quarter.
In June, consumer incomes rose by $18.7 billion, or 0.1 percent, while disposable incomes increased by $16.3 billion, or 0.1 percent.
As a percentage of disposable income, savings rose from 5 percent in May to 5.4 percent in June.
Inflation, meanwhile, remained muted in June with core prices, which excludes food and energy items, rising 1.3 percent on a 12-month basis.