Personal Consumption And Income Flat in June

WASHINGTON — Personal income and consumption were both flat in June on a seasonally adjusted annual basis, the Commerce Department said Tuesday.

Core personal consumption expenditures, excluding food and energy costs, were also flat in June, but up 1.4% from a year ago. Economists expected personal income to increase 0.2% and consumption to increase 0.1%, according to the median estimate from Thomson Reuters.

Consumption for May was revised lower to a 0.1% increase from the 0.2% gain initially reported. May incomes increased 0.3%, down from the initial 0.4% rise.

The June savings rate, which is disposable personal income minus consumption, rose 6.4% to the highest level in a year. Disposable personal income, excluding taxes, was flat after gaining 0.3% in May.

“Today’s report indicates that consumers are pulling back,” Chris Christopher Jr., senior principal economist at IHS Global Insight, said in a research note.

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