US Personal Spending Rises 0.3% in July

Consumer spending in the United States increased 0.3 percent in July from June of 2016, slowing from an upwardly revised 0.5 percent gain in the previous period but matching market expectations. It is the fourth straight month of gains, mainly boosted by spending for new vehicles and suggesting robust consumer demand. Income rose at a faster 0.4 percent, also in line with forecasts.

Real personal consumption expenditure rose 0.3 percent, mainly due to increases in spending for new motor vehicles and for services that was partially offset by a decrease in spending for nondurable goods.

Real disposable personal income went up 0.4 percent which primarily reflected increases in wages and salaries and personal current transfer receipts. Personal outlays rose $41.6 billion; personal saving was $794.7 billion and the personal saving rate, personal saving as a percentage of disposable personal income, was 5.7 percent.

The PCE price index was unchanged from June. Excluding food and energy, the PCE price index increased 0.1 percent in July.

US Personal Spending Rises 0.3% in July

BEA | Joana Taborda |
8/29/2016 1:50:53 PM