Consumer spending lost momentum in June and a drop in dividend payments caused incomes to stagnate, signaling the U.S. economy may get less help from households this quarter, Commerce Department figures showed Tuesday.
Highlights of Personal Income and Spending (June)
• Purchases rose 0.1% (est. 0.1%) after 0.2% gain in May
• Incomes were little changed (est. 0.4%) after 0.3% advance
• Price gauge tied to consumption was unchanged for a second month (est. unchanged); was up 1.4% from year ago (est. 1.3%)
• Excluding food and energy, prices rose 0.1% for second month (est. 0.1% rise); core up 1.5% from year ago (est.
June marked a third straight month of slowing nominal spending. A weaker handoff into this quarter signals household outlays, which accounts for about 70 percent of the economy, could come short of matching the pace of the prior three-month period that helped lead a rebound in economic