Consumer Spending Increased in July
Washington, DC, August 30, 2019-Personal income increased $23.9 billion (0.1%) in July, according to estimates released by the Bureau of Economic Analysis.
Disposable personal income (DPI) increased $44.4 billion (0.3%), and personal consumption expenditures (PCE) increased $93.1 billion (0.6%).
Real DPI increased 0.1% in July and Real PCE increased 0.4%. The PCE price index increased 0.2%. Excluding food and energy, the PCE price index increased 0.2%.
Says the Wall Street Journal, “Consumer spending is the driving force behind the U.S. economy, accounting for more than two-thirds of total demand. Solid spending bodes well for third-quarter growth.
“Americans snapped up both long-lasting goods such as refrigerators and nondurable goods like clothing last month.
“A low unemployment rate is prompting Americans to shop, visit restaurants and make home improvements. But a historically tight labor market doesn’t appear to be putting more money in Americans’ pockets at a particularly fast rate. Incomes in July edged up just 0.1%, with wages and salaries edging up a modest 0.2%.”