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Sept. 2, 2014 – U.S. consumer spending decreased by 0.1 percent in July – the first time spending fell in a month since January – according to data released from the Commerce Department on Friday.

"While second quarter gross domestic product was very strong, the third quarter is off to a poor start with the disappointing report on consumer spending," NAFCU Chief Economist and Director of Research Curt Long said. "If growth fails to meet expectations this quarter, the strong spring may be recast as a temporary bounce back after a frigid winter rather than a sign of gathering economic momentum."

In June, consumer spending rose 0.4 percent.

Personal income rose 0.2 percent in July – the smallest monthly increase of the year, The Wall Street Journal reported Friday. In June, income rose 0.5 percent.

"The combination of reduced spending, slow income growth and below-target inflation provide ammunition for the Federal Reserve to maintain the current ultra-low interest rate environment," Long said.