The Personal Income and Outlays report from the Bureau of Economic Analysis (BEA) came in just how everyone had hoped. While growth moderated, it still held at solid levels of income and spending growth, while inflation held on target.
Personal income increased $54.8 billion (0.3%) in July, while disposable personal income (DPI) increased $52.5 billion (0.3%) and personal consumption expenditures (PCE) increased $49.3 billion (0.4%).
The increase in personal income for the month was fueled by increases in wages and salaries, personal dividend income, and rental income.
Real DPI rose 0.2% in July and Real PCE by 0.2%. The PCE price index gained 0.1%. Excluding food and energy, the PCE price index increased 0.2%. The $29.6 billion increase in real PCE was fueled by an increase of $10.9 billion in spending for goods and a $18.9 billion increase in spending for services.
Personal saving was $1,048.1 billion in July and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.7%.