MW:U.S. incomes up, consumer spending down in June
By Jeffry Bartash
WASHINGTON (MarketWatch) - The income of U.S. workers rose slightly in June, but they spent less and saved more even though consumer prices fell. Personal income rose a seasonally adjusted 0.1% June, the smallest increase since last November, the Commerce Department reported Tuesday. Spending by consumers, however, dropped 0.2% to mark the first decline in nearly two years. Adjusted for inflation, personal consumption fell less than 1% in June. As a result, the individual savings rate climbed to the highest level of 2011 - 5.4% of disposable income in June vs. 5.0% in May. Inflation, meanwhile, also declined in June based on the latest reading from the personal consumption expenditure price index. The index decreased 0.2%. The core PCE, which excludes volatile food and energy costs, rose 0.1%, however. Economists surveyed by MarketWatch had forecast 0.1% increases in both personal income and consumer spending. The core PCE index was expected to rise 0.2%. The government also revised consumer spending in May to an increase of 0.1%.
