by Calculated Risk on 8/29/2011 08:30:00 AM
Monday, August 29, 2011
Personal Income increased 0.3% in July, Spending increased 0.8%
The BEA released the Personal Income and Outlays report for July:
Personal income increased $42.4 billion, or 0.3 percent ... in July ... Personal consumption expenditures (PCE) increased $88.4 billion, or 0.8 percent.The following graph shows real Personal Consumption Expenditures (PCE) through July (2005 dollars). Note that the y-axis doesn't start at zero to better show the change.
...
Real PCE increased 0.5 percent ... The price index for PCE increased 0.4 percent in July
![Personal Consumption Expenditures](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6nOlfGg531DlrSOFstCmB1l2es3w-8d7mVGuyRytIZJ-NZTRrX0fqweCijFV09_YbYAv9QHK5MBMAQLEpYJhyphenhyphenoO-Al_RUouUgQIezzcLuoPKGmi2LM8C9piBOPpbHwxoor4l3Jw/s320/PCEJuly2011.jpg)
PCE increased 0.8 in July, and real PCE increased 0.5% as the price index for PCE increased 0.4 percent in July.
Note: The PCE price index, excluding food and energy, increased 0.2 percent, the same increase as in June.
The personal saving rate was at 5.0% in July.
Personal saving -- DPI less personal outlays -- was $582.8 billion in July, compared with $638.6 billion in June. Personal saving as a percentage of disposable personal income was 5.0 percent in July, compared with 5.5 percent in June.
![Personal Saving rate](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKEGAtPxmkL0HEYMMWJn4-5i5tuV7u4VVCHaniBPGnOeN4_Xm2vMf03X-SfaWqFyAthY0W2QVBQQT6DRgk7LLhqnUX0JGycAjtU6BHDcG1nZpSYYdNIbwEc-fZY0LWp9LQJhFV3A/s320/PersonalSavingJuly2011.jpg)
Real PCE was revised up a little for Q2 too. This was a solid increase in spending and above the consensus of 0.5% - however I expect August to be weaker due to the confidence shattering debt ceiling debate.