Personal Income Fell in June Absent Stimulus

Washington, DC, Aug. 4, 2009--Personal income fell in June after surging in the previous month on government stimulus, while spending by individuals increased, according to the Commerce Deparment.

The Department said personal income fell 1.3% in June, compared with a revised 1.3% increase in May, when government stimulus boosted social benefits payments and reduced taxes.

The June decrease was the largest drop in personal spending since January 2005, when incomes fell 2.3%. It was also larger than the 1% decrease analysts expected.

Excluding the impact of the government's economic stimulus, incomes eased 0.1% in June and were essentially flat in May, according to the report.