Americans’ personal income growth, spending both gain pace in July

ISTANBUL 

Americans’ personal income growth and personal spending both gained pace in July from the previous month, according to official figures released Friday.

Personal income climbed $75.1 billion, or 0.3%, at a monthly rate in July, according to the US Bureau of Economic Analysis.

The figure came in higher than market estimates of 0.2% and gained its pace from a 0.2% monthly increase seen in June.

“The increase in current-dollar personal income in July primarily reflected an increase in compensation,” the agency said in a statement.

Disposable personal income, which is personal income minus personal current taxes, rose $54.8 billion in July, or 0.3%, from the previous month when it was up 0.2%.

Personal spending, meanwhile, also referred to as personal consumption expenditures (PCE), increased $103.8 billion, or 0.5%, in July from the month before.

That figure came in line with the market expectations, while it also showed an acceleration from a 0.3% monthly gain in June.

“The $103.8 billion increase in current-dollar PCE in July reflected an increase of $59.3 billion in spending for services and $44.5 billion in spending for goods,” said the agency.

Within services, the largest contributor to the increase was housing and utilities, it added.

• personal consumption expenditures (PCE)
• personal income
• Personal spending
• US Bureau of Economic Analysis.