The big 0.6 increase in consumer spending, which accounts for two-thirds of economic activity, reflected a record level of auto sales during the month. Americans' disposable personal income, the amount left over after paying taxes, was up 0.2 percent in June, the same increase as the overall income figure. The big June increase in spending and the slowdown in incomes pushed the amount Americans were able to save down to 0.2 percent in June, the lowest level since the government began keeping monthly statistics in 1959. The savings rate had dipped to 0.5 percent in May after a 1.1 percent rate in April, revisions of government data showed. Part of the low savings reflects a statistical quirk in how the government tracks the data.
Savings reflect the amount left over after subtracting spending from incomes.
However, the government does not count capital gains profits as part of income. Thus the savings rate appears lower in times when people are cashing in their stock market gains and spending the profits.