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.