(August 29, 2008)--Personal incomes plunged in July while consumer spending slowed significantly as the impact of billions of dollars in government rebate checks began to wane, according to figures released Friday.
The Commerce Department says personal incomes fell by 0.7 percent in July, the biggest drop in nearly three years and a far larger decline than the 0.1 percent decrease analysts expected.
Consumer spending edged up a modest 0.2 percent, in line with expectations, but far below June's 0.6 percent rise.
When the impact of rising prices was factored in, spending actually dropped by 0.4 percent in July, which was the weakest showing for inflation-adjusted spending in more than four years.
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