US Personal Spending Rises 0.3% in June
Personal spending in the United States rose 0.3 percent from a month earlier in June 2019, following an upwardly revised 0.5 percent growth in May, mainly boosted by consumption of nondurables and services. Meanwhile, the core PCE price index, the Fed's preferred inflation measure, rose 1.6 percent year-on-year, remaining below the central bank's 2 percent target.
7/30/2019 12:48:48 PM
Personal consumption expenditures (PCE) rose $41.0 billion, or 0.3 percent, in June, as gains in services and outlays on other goods offset a decline in purchases of motor vehicles.
Real PCE grew $21.4 billion, or 0.2 percent, mainly reflecting 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. 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.
Personal outlays increased $44.2 billion in June. 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.
Personal income went up $83.6 billion, or 0.4 percent, boosted by increases in wages and salaries, government social benefits to persons, and supplements to wages and salaries.
Disposable personal income (DPI) increased $69.7 billion (0.4 percent). Real DPI advanced 0.3 percent.
The personal consumption expenditure (PCE) price index increased 0.1 percent from a month earlier in June, the same pace as in May. Prices for services advanced 0.2 percent while cost of goods fell 0.1 percent as a decline in nondurable goods (-0.4 percent vs 0.1 percent) offset a rise in durable (0.5 percent vs 0.1 percent). Year-on-year, the PCE price index went up 1.4 percent, the same as in the prior month and the core index increased 1.6 percent, above a 1.5 percent rise in May but below market expectations of 1.7 percent.