Consumers’ personal spending rose just 0.1% last June, the worst since February, the Commerce Department reported today.
The slight June growth in household consumption, which is considered the real engine of the US economy because it accounts for two-thirds of activity, was in line with analysts’ forecasts.
In its report, the government revised spending growth in May up from 0.1% initially estimated to 0.2%.
As for personal income, which includes all types of income in addition to wages, in June they remained stable compared to the previous month.
Economists had forecast personal income growth of 0.4% in June following a 0.3% increase in the previous month.
Meanwhile, the personal savings rate, which quantifies the level of savings as a percentage of disposable income, was 3.8% in June.
Between April and June, consumer spending in the US rose by 2.8% in the second quarter of the year, the government reported last week by publishing its first estimate of gross domestic product (GDP) period.
In the second quarter GDP grew at an annual rate of 2.6%, more than double the 1.2% registered in the previous period.