US Personal Spending In Line With Forecasts

Personal spending in the United States edged up 0.1 percent month-over-month in June of 2017, following an upwardly revised 0.2 percent rise in May and in line with market expectations. A rise in services spending offset declines in purchases of both durable and nondurable goods. Meanwhile, personal income was flat in June, the worst performance in seven months and well below expectations of a 0.4 percent gain.

Consumption went up USD 8.1 billion from May, due to a 0.3 percent gain in services (the same as in May). In contrast, consumption fell 0.4 percent for durables, following a flat reading in the previous month and 0.4 percent for nondurables, the same as in May.

Personal income went down USD 3.5 billion or nearly flat. It primarily reflected decreases in personal dividend income and personal interest income that were partially offset by an increase in compensation of employees. The June decrease in personal dividend income reflected a return to prior levels after a notable increase in May.

Disposable personal income (DPI) decreased USD 4.2 billion (less than -0.1 percent). Real DPI decreased 0.1 percent in June and Real PCE increased less than 0.1 percent. 

The PCE price index was nearly flat, the same as in May. Excluding food and energy, the PCE price index increased 0.1 percent, also the same as in the previous month. 

US Personal Spending In Line With Forecasts

BEA | Joana Taborda |
8/1/2017 12:44:16 PM