Personal Spending, Incomes Rise in June

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ersonal spending jumped in June by 0.8% as consumers bought more automobiles, the Commerce Department reported Tuesday.

An increase in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.

The spending gain — which followed no change in May — was coupled with a rise in personal income of 0.5% after a 0.2% increase the previous month, Commerce said.

Income levels exceeded analysts’ expectations while spending levels were on target, Bloomberg reported. Economists expected June income levels to rise 0.4% and spending to rise 0.8%.

June spending on durable goods such as automobiles and furniture rose 3.3% after falling 3.1% on an inflation adjusted basis. The gain was the most since May 2004.

Spending on non-durable goods rose 0.9% following a 0.3% increase in May. Spending on services, which account for about 60% of all purchases, rose 0.3% following a 0.4% gain.

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