http://www.yahoo.com/headlines/current/business/stories/income.html (Einblicke ins Internet, 10/1995)
WASHINGTON (Reuter) - Consumer incomes rose at the strongest rate in six months during July, the Commerce Department said Thursday, helped by better job prospects.
As a result, consumers spent more for a third straight month and also put more into savings.
Incomes rose 0.7 percent to a seasonally adjusted annual rate of $6.06 trillion -- the best monthly increase since a 0.8 percent rise last January. Spending gained 0.2 percent to $4.89 trillion after increases of 0.5 percent in June and 1.1 percent in May.
Savings rose to 4.2 cents out of each dollar earned from 3.8 cents in June and 3.9 cents in May.
The rise in incomes was stronger than forecast by Wall Street economists, who had expected a 0.5 percent gain. But they had predicted a slightly stronger spending increase of 0.3 percent.
Department officials noted that the incomes gain was largely attributable to a 60,000-job increase in service employment last month, as well as to higher average earnings and a longer workweek.
Gains in personal income, which includes wages and salaries as well as income from sources such as dividends, interest and businesses, are essential for funding consumer purchases, which fuel two-thirds of national economic activity.
All the spending increase in July came on services and on nondurable goods like food and paper products.
By contrast, spending on durable goods fell to an annual rate of $622 billion, from $633.1 billion in June. The department said weaker sales of new cars accounted for the decline in durables spending in July.
Spending on nondurables rose to a rate of $1.46 trillion from $1.45 trillion in June, while spending for services was up to $2.81 trillion in July from $2.79 trillion.
Personal savings in July were at an annual rate of $219 billion, up from $199 billion in June and $202 billion in May.
Private-sector wages and salaries rose to an annual rate of $3.46 trillion from $3.43 trillion in June. Manufacturing payrolls were up slightly to a rate of $630 billion.