The $49.3 billion increase in personal consumption expenditures (PCE) was driven by advances in spending for nondurables (0.4 percent vs -0.1 percent in June) and services (0.4 percent vs 0.6 percent). Meanwhile, consumption of durable goods fell for the second consecutive month (-0.2 percent vs -0.1 percent).
Real PCE rose $29.6 billion, or 0.2 percent, reflecting an increase of $10.9 billion in spending for goods and a $18.9 billion increase in spending for services. Within goods, prescription drugs was the leading contributor to the increase. Within services, the largest contributor to the increase was spending for food services and accommodations.
Personal income rose $54.8 billion, or 0.3 percent, in July mainly due to increases in wages and salaries, personal dividend income, and rental income.
Personal outlays went up $52.7 billion in July. Personal saving was $1,048.1 billion and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.7 percent.
Disposable personal income (DPI) increased $52.5 billion, or 0.3 percent, in July. Real DPI increased 0.2 percent.
The personal consumption expenditures (PCE) price index increased 0.1 percent month-over-month in July, the same pace as in June and in line with market expectations. Services inflation was unchanged at 0.2 percent while goods prices showed no growth (vs -0.1 percent in June). Prices of durable goods went up 0.4 percent (vs -0.3 percent in June) while those of nondurable goods dropped 0.2 percent (vs 0.1 percent in June). Excluding food and energy, PCE prices grew 0.2 percent in July after a 0.1 percent gain in the previous month and also in line with market forecasts. On the year, the PCE price index rose 2.3 percent; and the core index increased 2 percent, matching the Federal Reserve's target.