Research >> Economics
Personal Income increased 0.4%, Spending increased 0.3%
Personal income increased $83.6 billion (0.4 percent) in June according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $69.7 billion (0.4 percent) and personal consumption expenditures (PCE) increased $41.0 billion (0.3 percent).
Real DPI increased 0.3 percent in June and Real PCE increased 0.2 percent. The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent.
The increase in personal income in June primarily reflected increases in wages and salaries, government social benefits to persons, and supplements to wages and salaries.
The $21.4 billion increase in real PCE in June primarily reflected a $19.5 billion increase in spending for nondurable goods and a $4.6 billion increase in spending for services, that was partially offset by a decline of $1.5 billion in spending for durable goods (table 7). Within nondurable goods, other nondurable goods (including pharmaceutical products) was the leading contributor to the increase. Within durable goods, motor vehicles and parts was the leading contributor to the decline. Detailed information on monthly real PCE spending can be found in Table 2.3.6U.
Personal outlays increased $44.2 billion in June (table 3). Personal saving was $1.34 trillion in June and the personal saving rate, personal saving as a percentage of disposable personal income, was 8.1 percent.
Updates to Personal Income and Outlays
Revisions to the personal income and outlays estimates reflect the results of the 2019 annual update of the NIPAs. Revisions to annual estimates of personal income and outlays for 2014 through 2018 are shown in table 12. Revised and previously published monthly estimates of personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI, and real PCE are shown in table 13. Revised and previously published annual and quarterly estimates are shown in table 14.
Personal income was revised down $0.1 billion, or less than -0.1 percent in 2014; revised down $1.8 billion, or less than -0.1 percent in 2015; revised down $4.0 billion, or less than -0.1 percent in 2016; revised up $47.9 billion, or 0.3 percent in 2017; and revised up $249.6 billion, or 1.4 percent in 2018.
DPI was revised up $1.3 billion, or less than 0.1 percent in 2014; revised down $4.3 billion, or less than -0.1 percent in 2015; revised down $5.8 billion, or less than -0.1 percent in 2016; revised up $36.7 billion, or 0.2 percent in 2017; and revised up $219.7 billion, or 1.4 percent in 2018.
Personal outlays was revised up $0.9 billion, or less than 0.1 percent in 2014; revised down $8.9 billion, or -0.1 percent in 2015; revised down $16.4 billion, or -0.1 percent in 2016; revised down $7.4 billion, or -0.1 percent in 2017; and revised up $46.4 billion, or 0.3 percent in 2018.
The personal saving rate was revised up less than 0.1 percentage point to 7.3 in 2014, revised up less than 0.1 percentage point to 7.6 in 2015, revised up 0.1 percentage point to 6.8 in 2016, revised up 0.3 percentage point to 7.0 in 2017, and revised up 1.0 percentage point to 7.7 in 2018.
Posted: July 30, 2019 Tuesday 08:30 AM