Consumer spending in the US stagnated in June as labour-market weakness prompted Americans to use the biggest gain in incomes in three months to build savings.

Household purchases, which make up 70 per cent of the US economy, were unchanged last month after a 0.1 per cent decline in May, a US commerce department report showed .

Incomes climbed 0.5 per cent, lifting the saving rate to 4.4 per cent, the highest in a year. Americans may be growing less pessimistic about job prospects later in the year, with another report showing consumer confidence rose unexpectedly for the first time in five months. Federal Reserve policy makers meeting today and tomorrow may wait for more employment data before deciding whether action is needed to boost the economy. – (Bloomberg)