U.S. consumer spending rises, incomes fall sharply

Consumers increased their spending in June for the second straight month, even as incomes fell sharply. The Commerce Department says consumers boosted their spending 0.4 percent, slightly ahead of analysts' estimates. That comes after spending rose 0.1 percent in May. The department says personal income fell 1.3 percent after rising by the same amount in May, when incomes were boosted by one-time payments from the Obama administration's stimulus package. Economists expected personal incomes, the fuel for future spending, to fall 1 percent. Consumer spending is closely watched because it accounts for about 70 percent of total U.S. economic activity.