Spending, Income Up Last Month: Signs Said to Point To Weak Recovery
Personal incomes and consumer spending both rose 0.5 percent in June, the government said yesterday in a report analysts saw as a sign the economy will continue to grow during the third quarter.</br></br>'It gives consumer spending quite , a bit of momentum going into the third quarter," said Laurence H. Meyer, head of a St. Louis economic forecasting firm. ÛÏItÛªs another piece of data that the third quarter is locked in as fairly solid," although he added the recovery will be weaker than normal.</br></br>Most analysts are projecting a weaker economic rebound this time than the average turnaround from See HEBOUND, E2, CoL 3 ~ REBOUND, From El the eight previous recessions since World War II. i Meyer also said thereÛªs ÛÏa significant risk" the economy will slow even more in the fourth quarter. He said a double-dip recession is possible, although a subdued recovery is more likely.</br></br>Income growth is needed to continue the economic recovery by providing the resources for consumer spending. Personal consumption represents about two-thirds of the nationÛªs economic activity.</br></br>The Commerce Department report said personal incomes in June totaled $4.80 trillion at a seasonally adjusted annual rate, up from $4.78 trillion a month earlier. It was the fifth straight monthly gain.