Incomes, spending remain flat in June while amount saved increases

By Edith Barlow on Aug 4th, 2010

The Bureau of Economic Analysis reported that personal incomes remained relatively flat from May to June.

According to the BEA, income increased $3 billion in June, which marked growth of less than 0.1 percent when compared to May. Disposable income also rose, although its climb was also lower than 0.1 percent.

Savings also saw a slight rise, increasing from $713.9 billion in May to $725.9 billion in June. Money put away by consumers accounted for 6.4 percent of disposable income during the sixth month of the year.

While incomes remained steady, consumer spending also stayed flat in June, which may add to worries that the economy continues to face stagnation. Roughly two-thirds of the country's gross domestic product relies on people parting with their cash.

Still, consumers saving money could mean they are trying to get a better handle on their credit card debt, especially since unemployment has remained near 10 percent for a number of months.

June's jobless rate came in at 9.5 percent, a decline from the 9.7 percent seen the month before.

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