Personal spending rises more than expected

Consumer spending rose more than forecast in June, while incomes missed expectations.

Personal income rose 0.2% in June, while personal spending climbed 0.4%, according to the Commerce Department.

Economists had forecast that both increased by 0.3%, according to Bloomberg.

In June, consumers spent more on electricity and gas, healthcare, and other services. Their spending on cars fell.

The savings rates rates for 2013 through 2015 were revised upwards.

Personal spending remained a key driver of economic growth in the second quarter, according to the advance estimate of GDP we got on Friday.

Core personal consumption expenditures, the Federal Reserve’s preferred measure of inflation, rose 1.6% year-on-year, as expected.

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