Personal income, spending in US show notable increases in July
(MENAFN) In July, personal income and personal spending in the United States both showed notable increases from the previous month, as reported by the US Bureau of Economic Analysis. Personal income rose by USD75.1 billion, which equates to a 0.3 percent increase on a monthly basis. This figure exceeded market expectations of a 0.2 percent gain and marked an acceleration from the 0.2 percent increase observed in June. The growth in personal income was primarily driven by higher compensation, reflecting a broader trend of rising earnings across the economy.
Disposable personal income, which is calculated by subtracting personal current taxes from personal income, also experienced growth in July. It increased by USD54.8 billion, or 0.3 percent, from the previous month, which was slightly higher than the 0.2 percent increase recorded in June. This rise indicates that individuals had more income available for spending and saving after taxes, contributing to overall economic health.
Personal spending, or personal consumption expenditures (PCE), saw a significant boost in July, with an increase of USD103.8 billion, or 0.5 percent, from June. This increase met market expectations and demonstrated an acceleration from the 0.3 percent monthly gain observed in the prior month. The rise in personal spending was driven by higher expenditures on both services and goods. Specifically, spending on services grew by USD59.3 billion, while spending on goods increased by USD44.5 billion.
Within the category of services, the most significant contributor to the increase was spending on housing and utilities. This highlights the ongoing consumer demand in these essential areas, which has played a key role in the overall rise in personal consumption.
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