Consumer spending rose 0.4% in June, while household incomes fell sharply as a result of the end of certain stimulus payments, the Commerce Department reported on August 4.

This was the second consecutive month of increased spending. In May, spending rose a revised 0.1%, weaker than the 0.3% initially estimated.

Personal incomes slipped 1.3% June, wiping out the 1.3% gain in May. This volatility reflected payments from the big economic stimulus measure from May, which ended in June.

It was the steepest drop in incomes since January 2005, and much sharper than the 1% decline expected.

Excluding the stimulus provisions, the decrease in incomes was 0.1%.

Copyright Agence France-Presse, 2009