Personal Income and Consumption Rose in July

Personal income increased $67.1 billion, or 0.4 percent, in July, according to the Bureau of Economic Analysis, the same pace as in June. Personal consumption expenditures (PCE) increased $37.4 billion, or 0.3 percent, also the same as in June.

Disposable personal income – personal income less taxes – increased 0.4 percent, after gaining 0.2 percent in June.

The personal savings rate as a percentage of disposable income was 4.9 percent, up 2 basis points from June.

Wages and salaries grew $35.8 billion, more than twice the amount as in June, driven largely by increases in service sector payrolls. Goods producing industries and manufacturing payrolls, which contracted in June, also posted gains during July.

The price index for PCE increased 0.1 percent in July, compared to 0.2 percent in June. The index excluding food and energy increased 1.2 percent from a year ago, well below the Federal Reserve’s target of 2.0 percent.

Read the BEA release.