U.S. consumer spending rose slightly more than expected in June, a Commerce Department report released on Tuesday said. The Commerce Department said spending rose 0.4 percent, boosted by expenditures on nondurable goods, after a revised 0.1 percent increase in May, which was previously reported as a 0.3 percent rise. That compared to market expectations for a 0.3 percent increase in spending, which accounts for over two-thirds of U.S. economic activity. Personal incomes declined 1.3 percent in June, however, as the effects of one-time government stimulus checks in May wore off, and U.S. stock index futures extended losses after the report while government bond prices rose. The drop in personal income was the biggest decrease since January 2005 and was larger than market expectations for a 1.0 percent drop. Spending on nondurable goods rose 1.7 percent in June after a 0.1 percent rise in May. Spending on services also was up slightly, but consumption of durable goods, like appliances and cars, fell 0.2 percent. A government report last Friday showed spending fell at a 1.2 percent rate in the second quarter, after rising 0.6 percent in the January to March period.
