Monday 11:45pm
October 20, 2014
Currently 57°F
Posted: Friday, August 29th 2014 at 10:09am

Consumer spending dips 0.1 percent

By The Associated Press
EMAIL STORY CONTACT EDITOR PRINT
click to enlarge
WASHINGTON (AP) -- U.S. consumer spending fell in July, with a drop in auto purchases accounting for most of the weakness. Income growth also slowed.

Consumer spending edged down 0.1 percent last month after a 0.4 percent increase in June, the Commerce Department reported Friday. It was the first decline in spending since January. Income growth slowed to 0.2 percent in July, the weakest showing in seven months.

The fall in spending came primarily from a decline in auto sales, which took a breather in July after posting big gains in recent months, although spending in other areas was also weak.

Consumer spending accounts for 70 percent of economic activity, so it needs to recover for the economy to keep its momentum in the second half of the year.

Economists had expected spending would slow in July based on reports of weak retail sales, but they said the slowdown should be temporary given the fact that job growth has been so strong. The combination of rising incomes from more people working and falling gas prices, which will give consumers more to spend on other items, is expected to lift spending in coming months.
© Copyright 2014 AccessNorthGa.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.


  • Click here
  • Click here
  • Click here
  • Click here
  • Click here
0.043749
icon
57°F
Gainesville, GA 30501
Clear
Wind: West 5 mph
Dew point: 52°F