Personal income increased 0.4% ($71.6 billion) in July, according to the Bureau of Economic Analysis, up from a 0.3% increase in June. Personal consumption expenditures also increased, rising 0.3% or $42.0 billion. Real disposable income – personal income less personal taxes – increased 0.4% after rising 0.2% in June.
The personal savings rate – personal savings as a percentage of personal income – was 5.7%, up from the June rate of 5.5%.
The increase in personal income was primarily due to a rise in personal wages and salaries, which rose $43.3 billion in July, up from a $41.7 billion increase in June.
The price index for PCE was unchanged in July. Excluding food and energy, the index increased 0.1%.
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