Consumer Spending Outpaces Income In July
WASHINGTON - Consumer spending outpaced income growth in July leading to a decline in the personal savings rate, the Commerce Department reported Monday. Consumer spending rose 0.4% in July. Personal income rose 0.2%. Wall Street economists had expected a 0.3% increase in incomes and a 0.3% gain in spending. The savings rate fell to 5.9% from 6.2% in June. Real disposable incomes fell 0.1% in July after rising 0.1% in June. The personal consumption expenditure price index rose 0.2% in July compared with June and is up 1.5% in the past year. Copyright © 2010 MarketWatch, Inc.