Personal income was up for the fifth consecutive month in June, rising 0.7 percent from May, but people spent more than they gained in higher income, the Commerce Department reported Thursday.

Personal income rose 0.7 percent to a total of $4 billion. And after taxes were taken out, the income people had to spend jumped 0.8 percent to $3.5 billion after rising a hefty 2.8 percent in May, the department's Bureau of Economic Analysis said.Personal spending jumped 1 percent in June, the seventh straight monthly increase, the department said.

People bought about the same amount of quickly consumed goods, such as food and clothing, but their purchases of expensive, long-lasting items, such as appliances and cars, jumped $8.6 billion, compared with a $2.7 billion increase in May.

People also saved more of their money in June, putting 4.3 percent of disposable personal income into savings, compared with 3.8 percent in May, the bureau said.

Wages and salaries increased $17.8 billion in June, compared with a $13.2 billion increase in May. Most industries saw healthy increases, except for service industry payrolls, which rose more slowly in June than in May.

Farmers' incomes dropped $1.3 billion in June, but that was better than the $3.2 billion drop in farm income in May. Federal subsidy payments to farmers' decreased $3.9 billion in June, compared with an increase of $1.9 billion in May, as higher prices for scarcer crops because of the drought reduced federal support payments.

Excluding subsidy payments, farmers' incomes increased $2.4 billion in June, compared with a decrease of $5 billion in May.

Tax payments dropped $700 million in June after a huge $63.9 billion drop in May, the bureau said. The May decrease reflected the bulge of nonwithheld income tax payments that always occurs around the April 15 income tax deadline, the bureau said.