This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Americans Cut Spending in June

NEW YORK ( TheStreet) -- Personal spending decreased for the first time since September 2009, dampening hopes for robust growth going into the summer.

The Commerce Department reported that personal spending for June decreased by 0.2, after a revised 0.1% increase in May.

Personal spending came short of consensus estimates, which was looking for a 0.1% uptick., however, had a more pessimistic view that consumers would pull back on spending by 0.3%. Economists already knew that overall consumer spending had ticked down in the second quarter from a government GDP report last Friday. June's update, however, suggests weak momentum especially toward the end of the second quarter.

Since consumer spending accounts for more than two-thirds of the economy, the latest update does not bode well for third quarter GDP estimates. UBS estimates 2.5% GDP growth in the third quarter and 2% in the fourth quarter.

"We're still looking for an economic rebound," said Jeremy Zirin, chief investment strategist at UBS. "The question is how much of negative momentum of first half carries over."

Meanwhile, income for June inched up 0.1%, about in line with consensus estimate. It represents a slightly smaller gain than May's revised 0.2% increase in income. The government had originally estimated that May's income grew by 0.3%.

The personal consumption expenditure index increased 0.1% after a 0.2% increase in May. The latest number also came short of economists' expectations for a 0.2% rise.

-- Written by Chao Deng in New York.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $118.00 1.10%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs