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US consumer spending rises, incomes fall
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Washington: US consumer spending rose in June, while household incomes fell sharply as a result of the end of certain stimulus payments, official data showed Tuesday.
The commerce department reported consumer spending rose for the second consecutive month, by 0.4%, slightly better than the average consensus of analysts for a 0.3% increase.
In May, spending rose a revised 0.1%, weaker than the 0.3% initially estimated.
Personal incomes slipped 1.3% June, wiping out the 1.3% gain in May, the report showed. This volatility reflected payments from the big economic stimulus measure from May, which ended in June.
It was the steepest drop in incomes since January 2005, and much sharper than the 1% decline expected.
Excluding the stimulus provisions, the decrease in incomes was 0.1%.
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