Higher Prices Dim Consumer Spending

News Type: Event — Seeded on Mon Aug 4, 2008 9:15 AM EDT

Article Source: The New York Times

us-news, economy, consumer-spending, higher-prices, commerde-department, high-prices-dim-consumer-spending

WASHINGTON — Consumer spending, after adjusting for inflation, fell in June as shoppers were hit with the biggest increase in prices in nearly three decades.

The Commerce Department reported Monday that consumer spending dipped 0.2 percent in June, after removing the effects of higher prices, the poorest showing since a similar drop in February.

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ShaunV

Consumer spending before removing inflation rose 0.6 percent in June after a big 0.8 percent increase in May. Much of that spending went to pay higher prices for gasoline and other items, however. Removing inflation, spending edged up by a more modest 0.3 percent in May and fell by 0.2 percent in June.

The overall economy, as measured by the gross domestic product, grew at a 1.9 percent rate in the April-June quarter, more than double the 0.9 percent increase in the January-March quarter.

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#1 - Mon Aug 4, 2008 9:18 AM EDT

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Higher Prices Dim Consumer Spending

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