CONSUMER SPENDING IN THE UNITED STATES STUMBLED IN JUNE CONTINUING A SLOWING TREND FOR THE FOURTH CONSECUTIVE MONTH AS HIGHER GAS PRICES AND BROAD INFLATION FORCE AMERICANS TO TRIM THEIR SPENDING THE COMMERCE DEPARTMENT REPORTED TUESDAY0 THE DEPARTMENT SAID CONSUMER SPENDING ROSE BY 04 PERCENT IN JUNE DOWN FROM A GAIN OF 06 PERCENT IN MAY0 ACCOUNTING FOR INFLATION THE GAIN WAS AN EVEN WEAKER 02 PERCENT0 MEANWHILE INCOME GROWTH AND A MEASURE OF INFLATION CLOSELY WATCHED BY THE FEDERAL RESERVE ALSO ROSE1RAISING FEARS ON WALL STREET THAT THE ECONOMY MIGHT SOON EXPERIENCE STAGFLATION OR SLOW GROWTH AND HIGH INFLATION0 CORE INFLATION WHICH EXCLUDES FOOD AND ENERGY COSTS ROSE BY 02 PERCENT IN JUNE AND WAS UP 24 PERCENT OVER THE PAST YEAR1THE BIGGEST YEAR-OVER-YEAR INCREASE SINCE A 25 PERCENT RISE IN APRIL 1995 CONSUMER SPENDING ACCOUNTS FOR TWO-THIRDS OF TOTAL ECONOMIC GROWTH IN THE UNITED STATES AND THE SLOWDOWN IN THE LAST FOUR MONTHS HAS ALREADY HAD A MAJOR EFFECT ON OVERALL GDP GROWTH WHICH WAS JUST 25 PERCENT IN THE SECOND QUARTER1LESS THAN HALF THE 56 PERCENT PACE OF THE FIRST QUARTER0 THE FEDERAL RESERVE MEETS AGAIN NEXT TUESDAY TO DECIDE WHETHER TO RAISE INTEREST RATES FOR THE 18TH CONSECUTIVE TIME0 WITH BOTH GROWTH SLOWING AND INFLATION RISING ECONOMISTS ARE DIVIDED OVER WHAT DECISION THE FED WILL MAKE0
