Personal Income Inched up 0.2% in July, Spending Up 0.1%
Washington, DC, August 26, 2022-Personal income increased $47.0 billion (0.2%) in July, according to estimates released by the Bureau of Economic Analysis.
Disposable personal income (DPI) increased $37.6 billion (0.2%), and personal consumption expenditures (PCE) increased $23.7 billion (0.1%).
The PCE price index decreased 0.1%. Excluding food and energy, the PCE price index increased 0.1%. Real DPI increased 0.3% in July, and real PCE increased 0.2%; goods increased 0.2%, and services increased 0.2%.
“U.S. households slowed their spending in July as they confronted historically high inflation and rising interest rates,” reports the Wall Street Journal.
“Consumer spending rose 0.1% in July from a month earlier, the Commerce Department said Friday. That marked a slowdown from June, when spending increased 1%. Americans spent less on certain goods-such as gasoline-in July, while they increased their outlays on services and long-lasting goods.
“Personal incomes edged up 0.2% last month.
“Consumers have faced major economic disturbances, including broadening inflationary pressures, rising interest rates that make mortgages and car loans more expensive, and supply-chain disruptions.
“The personal-consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, rose 6.3% in July from a year earlier, Friday’s report showed. That was down modestly from a 6.8% annual gain in June, a four-decade high.”