Brad Kelly Fri Aug 29, 6:49 PM ET Consumers put the brakes on spending while personal income plunged in July, the Commerce Department said Friday, as the effect of rebate checks faded and inflation sapped buying power.Personal income fell 0.7%, worse than expected and the biggest drop since Hurricane Katrina hit. Real disposable income, the amount of money Americans have to spend after taxes, declined 1.7%.
Consumer spending rose 0.2%, in line with views. But spending declined 0.4% after adjusting for inflation, which was the weakest since June 2004.
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