Personal Income and Expenditures Grew in June

Personal income increased $68.1 billion, or 0.4 percent, in June according to the Bureau of Economic Analysis, the same pace as the previous month. Personal consumption expenditures (PCE) increased $25.9 billion, or 0.2 percent, after increasing at a 0.7 percent rate in May.

Disposable personal income – personal income less personal current taxes – increased $60.6 billion, or 0.5 percent in June, after gaining 0.4 percent in May. Real disposable income increased 0.2 percent in June, up from a 0.1 percent increase in May.

The personal savings rate as a percentage of disposable income was 4.8 percent, up 0.2 percent from May.

Wages and salaries increased $18.3 billion, compared with an increase of $32 billion in May. Services producing industries saw growth in payrolls, while goods-producing industries contracted some.

The price index for PCE increased 0.2 percent in June, compared with an increase of 0.3 percent in May. The PCE price index excluding food and energy increased 0.1 percent in May, and increased 1.3 percent from a year ago.

Read the BEA release.