Americans’ Income Back On Upswing
Helped by higher wages, the income of Americans climbed modestly in June to recover from the first decline in more than a year. Consumer spending rose slightly to close out a weak second quarter for the economy.
The Commerce Department said Monday that income increased 0.4 percent in June after falling 0.2 percent in May, the first decline since a 0.6 percent drop in January 1994.
Consumer spending increased a mere 0.2 percent in June, the final month of a sluggish second quarter. It had shot up 0.9 percent in May, the biggest jump in nine months.
May’s increase was revised upward Monday from a 0.7 percent earlier estimate, and somewhat offset the disappointing showing in June. Consumer spending represents two-thirds of the nation’s economic activity.
Analysts said the new figures are consistent with an economy that seems to have hit bottom in the spring and already may be reviving moderately.