Consumer Behavior

Consumer spend increases, personal income dips

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August 3, 2020

U.S. consumer spending rose in June by 5.6%, for the second consecutive month, but was not as robust as the 8.5% spike in May, according to Commerce Department figures.

For the same month, personal income dipped 1.1%, a much lower decrease compared to May's 4.4%, according to a CNBC report.

While both are indicators of economic recovery, the ongoing COVID-19 pandemic and the end of the $600 extra in unemployment benefits may likely limit any economic benefit, noted the report.

In terms of what consumers are shopping for, clothing and footwear were top items in June, as was dining out and hotel bookings.