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U.S. Incomes Fell in June as One-Time Stimulus Boost Faded (2)

July 31, 2020, 2:35 PM

U.S. incomes fell more than expected in June as the effects of the government’s one-time stimulus checks dissipated, though an increase in unemployment-insurance payments pointed to the importance of expiring federal relief.

Personal incomes declined 1.1% from the prior month, a Commerce Department report showed Friday. The median estimate in a Bloomberg survey of economists called for a 0.6% drop. Consumer spending increased 5.6% in June, after jumping by the most on record a month earlier.

While the income decline reflected the continued unwinding of April’s sharp gain from one-time stimulus, unemployment-insurance payments actually increased in June by an ...