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Consumer spending rises in June

Consumer spending rises in June

Consumer spending that accounts for nearly 70 percent of total economic indicators rose 0.4 percent in June, the second straight month even though consumer's income fell significantly. In May, consumer spending increased 0.1 percent.

Personal income fell 1.3 percent in June, more than expected, after rising by the same percent in May. Personal savings rate decreased to 4.6 percent in June, after increasing to 6.2 percent in May, the highest level for the last 14 years.

Overall, the economy shrank 1 percent at an annual rate in the second quarter, far below than in the first quarter- 6.4 percent and in the fourth quarter of 2008- 5.4 percent.   

SF Examiner-8/4/2009