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Us Consumer Spending Increases With Prices

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Tuesday, 4 August 2009

New data from the U.S. Commerce Department shows consumers increased their spending in June for the second month in a row.

The department says spending rose 0.4 percent, after a 0.1 percent increase in May.

Analysts say the increase seems to have been driven by rising prices, particularly for gasoline.

When economists adjusted the consumer spending data for inflation, it actually fell 0.1 percent in June.

The Commerce Department says personal income fell 1.3 percent in the same month, the biggest decrease in four years.

The dip reverses a 1.3 percent increase in personal incomes in May. Incomes were boosted by special payments the government made to try to kick-start the economy. The payments have ended.


Some information for this report was provided by AFP, AP and Reuters.


Tuesday, 4 August 2009

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