Households among the bottom 20 percent sawtheir average annual income drop 2.2 percent. (Photo:Shutterstock)

(Bloomberg) — Most households spent more last year amid largerpaychecks. But one cohort was left behind.

Households among the bottom 20 percent sawtheir average annual income drop 2.2 percent to $11,335 in the 12months ending June 2018 from a year prior, according to data fromthe Bureau of Labor Statistics.

As income dropped, these households also cut back on consumptionand spent 0.5 percent less than the prior year. Still thesehouseholds with lower income were spending more than they earned,signaling the draw down of savings from a large number of retireesand to a lesser extent the taking on of additional debt.

The other 80 percent of households experienced rising income,with the top quintile of households seeing the highest gains at 5percent.

The lowest quintile of workers also spent the highest share ofincome on food and housing. As household incomes increase, asmaller share of money was allocated to the basic necessities. Thetop earning households distributed the greatest share of income topensions and personal insurance.

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