U.S. incomes dropped in August

Sept. 30, 2011 at 11:03 AM
| License Photo

WASHINGTON, Sept. 30 (UPI) -- Consumer incomes fell in August, dropping for the first time in 22 months, the U.S. Commerce Department's Bureau of Economic Analysis said Friday.

Incomes dropped 0.1 percent in August, after rising 0.4 percent in April, 0.3 percent in May, 0.2 percent in June and 0.1 percent in July.

Consumer spending, often cited as representing 70 percent of the nation's gross domestic product, rose 0.2 percent in August after rising 0.7 percent in July.

Real dollars highlight the difference. In July, spending rose by $88.4 billion. In August it rose by $22.7 billion.

Incomes in August fell by $7.3 billion, a radical swing south from the $17.1 billion consumers added to their incomes in July.

Data on disposable income has also formed a steady progression, rising 0.3 percent in April, 0.2 percent in May, 0.1 percent in June and July, and falling flat in August.

In August, core prices, which exclude energy and food prices, rose 0.1 percent after rising 0.2 percent in July. For all items, prices rose 0.2 percent, compared with 0.4 percent in July.

Related UPI Stories
Latest Headlines
Trending Stories
House Majority Leader Kevin McCarthy drops bid for speaker
WikiLeaks offering $50K for video of Afghan hospital bombing
Murdoch sorry for implying Obama's not a 'real black president'
Reid sues exercise companies over eye injury
Lumber Liquidators to pay $10M in DOJ settlement