Income Growth Eases in June
Personal income rose by 0.1 percent in June, down from 1.8 percent the previous month, the report said. Service-sector employers added $9.9 billion to payrolls, compared to $16.2 billion in May, while goods producers added $1.2 billion.
At the same time, higher prices drove up spending by 0.6 percent, while disposable income declined by 1.9 percent. Savings, measured as a percent of disposable income, were also down, dropping from 4.9 percent to just 2.5 percent.
In June, small-business owners cited "backdoor inflation" from rising payroll costs as a top business concern for the first time since the early 1980s, according to the National Federation of Independent Business. A growing number reported higher employee compensation costs as a source of weaker profits, the Washington D.C.-based lobby group said.