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Friday, July 30, 2021

Personal Income increased 0.1% in June, Spending increased 1.0%

by Calculated Risk on 7/30/2021 08:37:00 AM

The BEA released the Personal Income and Outlays, June 2021 and Annual Update report:

Personal income increased $26.1 billion (0.1 percent) in June according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) decreased $2.6 billion (less than 0.1 percent) and personal consumption expenditures (PCE) increased $155.4 billion (1.0 percent).

Real DPI decreased 0.5 percent in June and Real PCE increased 0.5 percent; goods decreased 0.2 percent and services increased 0.8 percent. The PCE price index increased 0.5 percent. Excluding food and energy, the PCE price index increased 0.4 percent.
emphasis added
The June PCE price index increased 4.0 percent year-over-year and the June PCE price index, excluding food and energy, increased 3.5 percent year-over-year.

The following graph shows real Personal Consumption Expenditures (PCE) through June 2021 (2012 dollars). Note that the y-axis doesn't start at zero to better show the change.

Personal Consumption Expenditures Click on graph for larger image.

The dashed red lines are the quarterly levels for real PCE.

Personal income and personal spending were above expectations,  and the increase in PCE was slightly below expectations.