Consumer Spending Outpaces Saving in July

Washington, DC, Aug. 30, 2010--Personal savings were down in July as consumer spending outpaced income growth, the Commerce Department reported Monday.

Consumer spending rose 0.4% in July. Personal income rose 0.2%. Wall Street economists had expected a 0.3% increase in incomes and a 0.3% gain in spending.

The savings rate fell to 5.9% from 6.2% in June. Real disposable incomes fell 0.1% in July after rising 0.1% in June. The personal consumption expenditure price index rose 0.2% in July compared with June and is up 1.5% in the past year.