WASHINGTON, Aug. 4 (UPI) -- The U.S. Commerce Department said Tuesday that personal incomes, a barometer of economic activity, dropped in June compared to May.
Incomes fell 1.3 percent in the month, while consumer spending rose 0.4 percent, largely due to higher gasoline prices.
Adjusting for inflation, spending fell 0.1 percent, the Bureau of Economic Analysis said. At the same time, prices overall rose 1.5 percent in the month.
Disposable income dropped 1.3 percent.
In the U.S., consumer spending makes up about 70 percent of the gross domestic product, making the figures critical to economic forecasts.
In May, spending rose 0.1 percent, lower than last month's 0.3 percent estimate, the Bureau said. Incomes in May were also revised lower, rising 1.3 percent, rather than 1.4 percent, the Bureau said.
