by Calculated Risk on 8/02/2011 09:03:00 AM
Tuesday, August 02, 2011
Personal Income increased 0.1% in June, PCE decreased 0.2%
The BEA released the Personal Income and Outlays report for June:
Personal income increased $18.7 billion, or 0.1 percent ... Personal consumption expenditures (PCE) decreased $21.9 billion, or 0.2 percent.The following graph shows real Personal Consumption Expenditures (PCE) through June (2005 dollars). Note that the y-axis doesn't start at zero to better show the change.
...
Real PCE decreased less than 0.1 percent. ... The price index for PCE decreased 0.2 percent in June
![Personal Consumption Expenditures](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVGEjWgRabKzcGj-riqxb9yGEp6so1shq-sJ4rf-shcmk0MTffe2oMl1nEaoVuHovTGJolDJFjEttl0av-MY9ZqWTUW_2JjNOftv9UGOrJUXMln31A1mP-HkID_jxHBebFbn4Y8w/s320/PCEJune2011.jpg)
PCE decreased 0.2 in June, and real PCE decreased less than 0.1% as the price index for PCE decreased 0.2 percent in June. On a quarterly basis, PCE barely increased in Q2 from Q1 (this was in the GDP report Friday).
Note: The PCE price index, excluding food and energy, increased 0.1 percent.
The personal saving rate was at 5.4% in June.
Personal saving -- DPI less personal outlays -- was $620.6 billion in June, compared with $581.7 billion in May. Personal saving as a percentage of disposable personal income was 5.4 percent in June, compared with 5.0 percent in May.
![Personal Saving rate](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaFNwWuYXcwpLPMiSlVI7tWPWU6yD1jj935sAyheDU_GgGDy6o_drC9jiWiro5bzxL7tw1HgdcXQ6nmaazkLzTVCJl04ctpB3nU2xU9OTu86m32bJxGF0ydAhjsSX6WF2OjR4iIg/s320/PersonalSavingJune2011.jpg)
Real PCE has declined for three straight months - this was expected based on the weak GDP report, but this is very weak.