US Personal Spending Rises 0.4% in June

Personal spending in the United States rose 0.4 percent month-over-month in June 2018, following an upwardly revised 0.5 percent gain in May and matching market expectations. It was the smallest increase in personal spending in four months.
BEA | Joana Ferreira | 7/31/2018 12:57:39 PM
Personal consumption expenditures (PCE) moved up $57.1 billion, or 0.4 percent, driven by an increase in spending for services (0.6 percent vs 0.3 percent). Meanwhile, consumption of durable goods was unchanged (vs 0.4 percent in May) and that of nondurables edged down 0.1 percent (vs 1.1 percent in May).

Real PCE rose $39.7 billion, or 0.3 percent, reflecting an increase of $36.4 billion in spending for services. The largest contributor to the increase was spending for food services and accommodations. Spending for goods increased $1.3 billion.

Personal income rose $71.7 billion, or 0.4 percent, in June mainly due to increases in wages and salaries and personal dividend income.

Personal outlays went up $62.7 billion in June. Personal saving was $1,049.7 billion in June and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.8 percent.

Disposable personal income (DPI) advanced $65.3 billion, or 0.4 percent. Real DPI increased 0.3 percent in June.

The personal consumption expenditures (PCE) price index increased 0.1 percent month-over-month in June, following a 0.2 percent advance in May and in line with market expectations. Services inflation was unchanged at 0.2 percent while goods prices dropped 0.1 percent (vs 0.1 percent in May). Prices of durable goods declined 0.3 percent (vs -0.1 percent in May) while those of nondurable goods rose at a softer 0.1 percent (vs 0.2 percent in May). Excluding food and energy, PCE prices also went up 0.1 percent in June after a 0.2 percent gain in the previous month and also in line with market forecasts. On the year, the PCE price index rose 2.2 percent; and the core index increased 1.9 percent, slightly below the Federal Reserve's 2 percent target.

US Personal Spending Rises 0.4% in June