American consumers earned more in July, but they also spent more and saved less.
U.S. personal income in July increased 0.2%, or $30.0 billion, and disposable income increased 0.2%, or $17.6 billion, the Commerce Department reported Monday, August 30. Personal spending increased $44.1 billion, or 0.4%, while saving totaled 5.9% in July versus 6.2% in June.
July’s spending figure was at its highest point since March, when personal consumption expenditures rose 0.5%. Saving fell from its level of 6.4% in June and 6.3% in May.
Consumer spending was expected to rise only 0.3% in July, according to a Thomson Reuters poll of analysts.