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Income, spending muted
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August 27, 1999: 9:01 a.m. ET
Pace of growth in July income, consumption slower than expected
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NEW YORK (CNNfn) - Americans' personal incomes rose in July at their slowest pace since December 1998, as consumers dipped slightly into their savings to bankroll modestly higher spending, the government reported Friday.
Personal income rose at a seasonally adjusted 0.2 percent, the Commerce Department said. That's weaker than the consensus estimate of 0.5 percent called for by economists polled by Reuters and follows a 0.7 percent increase in June.
July personal consumption rose 0.4 percent to a seasonally adjusted $6.2 trillion, compared with the Reuters' estimate of 0.5 percent and a 0.3 percent gain in June.
The personal savings rate deteriorated to minus 1.4 percent from minus 1.1 percent in June. It was the eighth consecutive month of a negative rate, which indicates that people are dipping into their savings.
The data had no major effect on the bond market, which can be sensitive to any news about inflation. The benchmark 30-year Treasury fell 5/32 of a point in price, for a yield of 5.90 percent, after the 8:30 ET data were released.
-- staff and wire reports
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Commerce Department
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