Consumer Spending, Incomes Flat in June

Washington, DC, Aug. 3, 2010--Consumer spending was flat in June and incomes failed to increase, the Commerce Department said.

The lack of growth for spending and incomes shows the economy ended the second quarter on a weak note.

The personal savings rate rose to 6.4% of after-tax incomes in June, the highest reading in nearly a year. The savings rate is now about three times the 2.1% average for all of 2007, before the recession began.

While income growth was flat in June, incomes did post solid gains in April and May. But households chose to save the extra money rather than spend it.