WASHINGTON (AP) - Americans spent no more in June than they did in May, even though their income grew at the fastest pace in three months.
The Commerce Department says consumer spending was flat in June following a 0.1 percent drop in May. Income rose 0.5 percent.
Americans cut back on spending this spring, reflecting rising uncertainty about the economy and jobs. In June, they spent slightly more on services. But they cut back on autos and other long-lasting manufactured goods. They also spent less on non-durable goods, such as clothing, food and gasoline - although some of that may reflect lower gas prices.
The big rise in income and no increase in spending translated into a jump in the savings rate, to 4.4 percent in June, highest in a year.
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