Personal Spending Rises; Incomes Take Biggest Plunge in Four Years

Consumer personal spending rose modestly in June, while incomes fell by the most in four years, the Commerce Department said Tuesday.

The 0.4% spending rise followed a 0.3% gain in May.

Personal incomes fell 1.3%, the biggest since June 2005.

Economists had forecast a 1% drop in incomes following a previously reported 1.4% gain in May, Bloomberg reported. The spending rise was slightly less than the 0.4% forecast.

An increase in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.