U.S. personal income rose at a seasonally adjusted annual rate of 0.5%, after rising an unrevised 0.2% in May, the U.S. Commerce Department reported today.

Meanwhile, personal consumption increased by 0.8%, after May’s unrevised flat reading.

Disposable personal income — income after taxes — rose 0.5%, following an unrevised 0.2% advance in May. Income after taxes and inflation rose 0.5% after inching up 0.1% in May. Wages and salaries rose 0.2%.

Personal saving as a percentage of disposable personal income was 0.0% in June — the lowest reading since October 2001, when the savings rate declined to minus 0.2%. The rate stood at 0.4% in May and 0.2% in April.

Consumption of big-ticket durable goods like automobiles and refrigerators jumped 2.9%. Car sales were strong in June as auto makers extended discounts normally bestowed upon employees to all buyers. Meanwhile, nondurable goods spending rose 0.7% and spending on services rose 0.5%.

The U.S. Commerce Department reported separately that factory-goods orders increased 1%, after rising a revised 3.6% during May. Consumer-goods orders fell 0.2%, after a 1.1% increase in May. Consumer durable-goods orders fell 0.5%; consumer nondurables went down 0.1%. Nondurable-goods orders, which include petroleum, fell 0.2%. Factory shipments fell by 0.1%. Unfilled orders rose by 2.8%. Factory inventories were flat.