P.M. BRIEFING : July Personal Incomes Up 0.6%
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WASHINGTON — Personal incomes rose 0.6% in July, their largest increase in four months, while consumer spending slowed to a 0.5% gain, the government said today.
The Commerce Department said incomes totaled a seasonally adjusted annual rate of $4.67 trillion, a $26.3-billion increase over June. It was the largest increase since a 0.7% gain in March.
At the same time, the department said, spending totaled $3.67 trillion, up $16.6 billion from the previous month but slower than June’s 1% increase.
A department spokesman said the slower pace resulted from fewer purchases of automobiles, food and clothing. Consumer spending is considered a barometer of economic health since it accounts for about two-thirds of the nation’s economic activity.
Americans’ savings rate--savings as a percentage of disposable income--was unchanged from June’s 4.9%.
The report said Americans’ income after taxes increased 0.5%, down slightly from 0.6% a month earlier.
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