US Spending In June Matches Decline Of 2001

Consumer spending in the United States fell by 0.7% in June – the largest drop since September 2001, according to figures published by the Commerce Department.

As reported in the Financial Times, US government statisticians have estimated that the economy grew slower than expected, up only 3% during the second quarter, owing to a 1% growth in consumer spending.

However, consumer spending for the period was hit by a decline during June, which resulted from a fall in the sale of vehicles and car parts which have been a volatile factor over the past few months, said the Commerce Department.

The Federal Reserve said that weaker consumer spending in June may be short-lived as higher energy prices could explain the slow-down. Growth in personal incomes was also weak when compared to previous periods, growing by only 0.2% in June, down from 0.6% in May, citing the slowest growth in more than a year.

Department Of Commerce: www.commerce.gov

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