Consumers Curbed Spending In June

0 Shares

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.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.