FOREX TradingCharts.com

Financial News: U.S. Personal Income Slumps More Than Expected, But

U.S. Personal Income Slumps More Than Expected, But Personal Spending Jumps

07/31/2020 - 09:48:00 (RTTNews)

(RTTNews) - Personal income in the U.S. slumped by more than expected in the month of June, according to a report released by the Commerce Department on Friday, although the report also showed another substantial increase in personal spending.

The Commerce Department said personal income tumbled by 1.1 percent in June after plunging by a downwardly revised 4.4 percent in May.

Economists had expected personal income to decrease by 0.5 percent compared to the 4.2 percent nosedive originally reported for the previous month.

The bigger than expected drop in personal income reflected a decrease in government social benefit payments made to individuals from federal economic recovery programs in response to the COVID-19 pandemic

Disposable personal income, or personal income less personal current taxes, also slumped by 1.4 percent in June after plummeting by 5.1 percent in May.

Meanwhile, the report said personal spending surged up by 5.6 percent in June after skyrocketing by an upwardly revised 8.5 percent in May.

Personal spending had been expected to jump by 5.5 percent compared to the 8.2 percent spike originally reported for the previous month.

Excluding price changes, personal spending shot up by 5.2 percent in June after soaring by 8.4 percent in May.

"While consumers felt more at ease spending in June, real-time data point to plateauing demand since early July," said Gregory Daco, Chief U.S. Economist at Oxford Economics.

He added, "Moreover, with the health situation deteriorating, fiscal aid running dry, employment cooling and confidence ebbing, the risks are skewed to the downside."

With income falling and spending spiking, personal saving as a percentage of disposable personal income dropped to 19.0 percent in June from 24.2 percent in May.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Eurozone Investor Confidence Highest Since February - Sentix (06 hr(s), 57 min(s), 43 sec(s) ago)
(RTTNews) - Euro area investor confidence rose for a fourth straight month in August to its highes ...Full Story»

Latvia Consumer Prices Rise In July (07 hr(s), 30 min(s), 43 sec(s) ago)
(RTTNews) - Latvia's consumer prices rose for the first time in four months in July, figures f ...Full Story»

Sweden Household Consumption Falls In June (07 hr(s), 33 min(s), 43 sec(s) ago)
(RTTNews) - Sweden's household consumption declined in June, data from Statistics Sweden showe ...Full Story»

Slovakia Industrial Production Declines At Softer Pace In June (07 hr(s), 56 min(s), 43 sec(s) ago)
(RTTNews) - Slovakia industrial production declined at a softer pace in June as the slump in the t ...Full Story»

Turkish Jobless Rate Rises In May (07 hr(s), 57 min(s), 43 sec(s) ago)
(RTTNews) - Turkey's jobless rate rose in May, data from the Turkish Statistical Institute sho ...Full Story»

Romania Trade Deficit Widens In June (07 hr(s), 58 min(s), 43 sec(s) ago)
(RTTNews) - Romania's trade deficit increased in June as exports declined faster than imports, ...Full Story»

Norway Inflation Slows In July (09 hr(s), 0 min(s),43 sec(s) ago)
(RTTNews) - Norway's consumer price inflation eased in July, data from Statistics Norway showe ...Full Story»

Denmark Inflation Rises In July (09 hr(s), 03 min(s), 43 sec(s) ago)
(RTTNews) - Denmark's consumer prices rose in July, data from Statistics Denmark showed on Mon ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Eurozone Investor Confidence Highest Since February - Sentix

08/10/2020 - 08:48 AM (RTTNews)
(RTTNews) - Euro area investor confidence rose for a fourth straight month in August to its highes ...Full Story>>

Latvia Consumer Prices Rise In July

08/10/2020 - 08:15 AM (RTTNews)
(RTTNews) - Latvia's consumer prices rose for the first time in four months in July, figures f ...Full Story>>

Sweden Household Consumption Falls In June

08/10/2020 - 08:12 AM (RTTNews)
(RTTNews) - Sweden's household consumption declined in June, data from Statistics Sweden showe ...Full Story>>

Slovakia Industrial Production Declines At Softer Pace In June

08/10/2020 - 07:49 AM (RTTNews)
(RTTNews) - Slovakia industrial production declined at a softer pace in June as the slump in the t ...Full Story>>

Turkish Jobless Rate Rises In May

08/10/2020 - 07:48 AM (RTTNews)
(RTTNews) - Turkey's jobless rate rose in May, data from the Turkish Statistical Institute sho ...Full Story>>

Do not sell my personal information

Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.