U.S. Household Spending, Income Rose at Solid Rate in June - ABI

U.S. households’ incomes are rising in pace with robust spending, an indication that consumers have the capacity to drive gains in economic output, the Wall Street Journal reported. Personal-consumption expenditures, a measure of household spending on everything from hospital stays to groceries, increased a seasonally adjusted 0.4 percent in June from May, the Commerce Department said yesterday. Matching that gain, personal income — reflecting Americans’ pretax earnings from salaries and other sources, including investments — also rose 0.4 percent. Those increases helped propel overall economic output to a 4.1 percent annual growth rate in the second quarter, the Commerce Department said last week. It was the strongest growth since 2014.

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