Commerce: Americans trim personal spending in June
Washington, DC, United States (AHN) – Cash-strapped Americans cut back on spending in June by 0.2 percent, which translated to a decrease of $21.9 billion in personal consumption expenditures (PCE), according to the Commerce Department’s Bureau of Economic Analysis.
Although personal income was up slightly, personal consumption fell by twice as much as personal income rose.
Personal income was up by $18.7 billion, or 0.1 percent, while disposable personal income (DPI) increased $16.3 billion, or 0.1 percent for June.
The answer to why personal consumption fell while personal income rose might be explained by the fact that personal income did not increase across the board for all income types. For example, wage earners saw a decrease in income while some non-wage categories increased.
Data for wages and salaries showed:
- Private wage and salary disbursements decreased $2.2 billion in June.
- Goods-producing industries’ payrolls decreased $1.8 billion and manufacturing payrolls decreased $2.1 billion.
- Services-producing industries’ payrolls decreased $0.3 billion.
- Government wage and salary disbursements decreased $0.4 billion.
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