US consumer spending fell in July, with the 0.1% dip marking the first decline for six months and surprising analysts who had been looking …
US consumer spending fell in July, with the 0.1% dip marking the first decline for six months and surprising analysts who had been looking for a 0.2% increase. The spending fall is also a contrast to the 0.4% gain recorded in June and will stoke fears that the economy is stalling. Personal incomes grew by just 0.2% while disposable personal incomes increased 0.1%. Both of those figures marked their slowest pace of expansion so far this year.
The Commerce Department figures, released Friday, showed that wages and salaries increased 0.2%, slower than the 0.4% gain in June. Spending on durable goods fell by 0.6% at seasonally adjusted rates, a swing from a 0.5% increase in June, while spending on non-durable gods fell 0.2% seasonally adjusted compared to a 0.3% gain the month before.
The personal saving rate, meanwhile, increased to 5.7% in July from 5.4% in June.
The latest economic report prompted some to cut their growth forecasts for Q3, with Macroeconomic Advisers trimming it to 2.6% from 3.1%, Dow Jones reported.