Taxes paid and unemployment benefits are no longer the huge positives for personal income they have been since the downturn began in December 2007 (growing and shrinking respectively). Now, it is all about wages which have been rather stagnant.
The savings rate among U.S. households rose to the highest level in a year in June as income and spending were flat, the Commerce Department estimated Tuesday.
Income was unchanged in June, failing to show growth for the first month since July 2009. Consumer spending was also flat.
The June report was slightly weaker than expected and included downward revisions to figures from April and May.
Economists had been looking for June income to rise by 0.2%, with spending pegged to increase 0.1% in a MarketWatch survey.
Consumer spending, adjusted for inflation, rose 0.1%.