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Americans cut spending for first time in 20 months
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WASHINGTON (AP) — Americans cut their spending in June for the first time in nearly two years after seeing their incomes grow by the smallest amount in nine months. The latest data offered a troubling sign for an economy that is adding few jobs and barely growing.
Consumer spending dropped 0.2 percent in June, the Commerce Department said Tuesday. It was the first decline since September 2009.
Some of the decline was the result of food and energy prices moderating after sharp increases earlier this year. When excluding spending on those items, consumer spending was flat.
Still, consumers also cut back on big-ticket items, such as cars and appliances, which help drive growth.
Incomes rose 0.1 percent, the smallest gain since September. Many people are also pocketing more of their paychecks. The personal savings rate rose to 5.4 percent of after-tax incomes, the highest level since August 2010.
The data confirmed last week's report that showed the economy expanded at an annual rate of just 1.3 percent in the spring after only 0.4 percent growth in the first three months of the year. It also highlighted that consumer spending softened at the end of the April-June quarter, which could mean the sluggish economy is worsening.
Stocks fell after the report was released. The Dow Jones industrial average dropped more than 100 points in morning trading. Broader indexes also declined.
"The recent run of weak economic news has made us more concerned that any rebound will be more modest than previously looked likely," said Paul Dales, senior U.S. economist at Capital Economics.
High gas prices and unemployment have squeezed household budgets this spring. Many Americans are cutting back on purchases of cars, furniture, appliances and electronics. Consumer spending is closely watched because it accounts for 70 percent of economic activity.
Employers have responded by reducing hiring. The economy added just 18,000 net jobs in June, the fewest in nine months. The unemployment rate rose to 9.2 percent, the highest level this year.
The government issues its July employment report on Friday.
Businesses are creating fewer jobs despite reporting strong earnings and sitting on large cash reserves.
"What worries me is that businesses are deriving their strong earnings growth through productivity gains, limited wage increases and foreign activities," said Joel Naroff of Naroff Economic Advisors. "While that may be good for an individual firm, when most companies do that, income gains become so limited that spending and ultimately growth fades. That is the problem we are now facing."
The biggest drop in spending occurred in such items as food and gasoline. Spending on such non-durable goods fell 5.5 percent, reflecting price declines after spikes early this year. An inflation gauge tied to consumer spending dropped 0.2 percent in June, the biggest one-month decline since September 2009. Outside of food and energy, prices were up 0.1 percent.

Local farm partnership brings fresh beef to Warren County Schools
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Warren County Schools has beefed up lunch menus this school year through a new community partnership. Thanks to a collaboration between the district’s School Nutrition Department and Barton Creek Farms, students at Warren County High School, Warren County Middle School, West Elementary, Eastside Elementary, and Dibrell Elementary are enjoying locally sourced, farm-fresh beef in their lunches as part of a pilot program.

The initiative, spearheaded by Terri Mullican, Director of School Nutrition, has already shown great promise in its first few months. The partnership with Barton Creek Farms, located in Rock Island, Tennessee, ensures that the beef served is not only local to Warren County but of the highest quality. Barton Creek Farms specializes in farm-to-fork beef, with grass-fed and grain-finished cattle. Each calf is born and raised in Rock Island and goes through USDA-inspected processing, ensuring it meets the strictest safety and quality standards.

“When the opportunity arose to provide fresh, local beef, we knew it was a no-brainer,” Mullican said. “The fact that it’s a product from right here in our community makes it even more special. We can’t wait to implement it district-wide.”

Barton Creek Farms delivers fresh ground beef to the district monthly, and the nutrition

department incorporates it into homemade recipes such as lasagna, meatloaf, chili, and tacos.

As of now, the beef is being served at five schools, but the ultimate goal is to expand the program to all ten lunch-serving schools in the district.

The pilot program originated from a conversation between Mary Roller of Barton Creek Farms and Mullican. Roller, recognizing the farm’s potential to support local schools, reached out to gauge the district’s interest in serving local beef to students. Around the same time, a Warren County school board member contacted Mullican to share information about a similar partnership in neighboring Dekalb County, which helped push the initiative forward.

The timing worked in the district’s favor, as the nutrition department was able to fund the purchase of the beef using existing resources, eliminating the need for additional funding. Now that the pilot program is enjoying a successful run, the department has budgeted to extend the partnership district-wide for the 2025-26 school year.

Dr. Grant Swallows, Director of Schools, praised the program’s economic approach to student nutrition.

“This pilot is a perfect example of how we can use local resources to continue providing nutritious, healthy meals for our students,” he said. “We are grateful for partnerships like this one that benefit both our students and our local community. We always strive to support our local businesses when we can because our community is so good to us.”

In addition to working with Warren County Schools, Barton Creek Farms also partners with local restaurants to offer farm-fresh beef on their menus. The farm’s offerings include ground beef, steaks, roasts, and custom cuts by the quarter, half, or whole cow, meeting diverse consumer needs.

As the program continues to grow, the district hopes to expand its focus on farm-to-school meals, benefiting students’ health and connecting them to the agricultural roots of the community