Consumer Spending, Income Growth Weak in June

Shoppers walk past a Marshalls store in Miami. (AP Photo/Lynne Sladky)

(CN) — Consumer spending, the primary mover of the U.S. economy, slowed in June as income growth turned in the weakest performance in seven months, the Commerce Department said Tuesday.

According to the government, spending by Americans rose a negligible 0.1 percent in June after a 0.2 percent rise in May.

It was the weakest showing since spending increased a similar 0.1 percent in February.

The Commerce Department also reported that incomes were flat in June following a 0.3 percent rise in May.

That was the worst showing since incomes fell 0.1 percent last November.

Despite the weak June numbers, spending for the second quarter, April through June, rose, resulting in an economic growth rate of 2.6 percent for the period.

It should also be noted that the slowdown in income growth reflects several different sources of income, including dividend payments, interest payments and other investment income.

If one looks only at wages and salaries, the numbers are better, rising 0.4 percent in June.

%d bloggers like this: