Updated: 26-Aug-26 10:06 ET
| July Personal Income and Spending |
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| Updated: 26-Aug-26 10:06 ET |
Highlights
- Personal Income increased 0.4% month-over-month in July (Briefing.com consensus 0.2%), personal spending was up 0.2% (Briefing.com consensus 0.2%), the PCE Price Index was up 0.2% (Briefing.com consensus 0.1%), and the core-PCE Price Index also rose 0.2% (Briefing.com consensus 0.2%).
- On a year-over-year basis, the PCE Price Index was up 3.7% versus 3.7% in June, and the core-PCE Price Index was up 3.3% versus 3.3% in June.
Key Factors
- The PCE Price Index for Goods was up 0.1% in July after falling 0.6% in June.
- The PCE Price Index for Services was up 0.3% after being up 0.1% in June.
- Wages and salaries increased 0.3% month-over-month in July after increasing 0.1% in June.
- Real disposable income was up 0.4% month-over-month in July.
- Real personal spending was unchanged in July, down from a 0.4% increase in June.
- The personal savings rate, as a percentage of disposable personal income, was 3.0%, up from 2.7% in July.
Big Picture
- The key takeaway from the report is that year-over-year rates for the PCE Price Index (3.7%) and the core-PCE Price Index (3.3%) remained at levels from June, so the report did little to alter the market's view of the latest income and spending trends, aside from an improvement in the personal savings rate.
| Category | JUL | JUN | MAY | APR | MAR |
| Personal Income | |||||
| Total Income | 0.4% | 0.2% | 0.7% | 0.1% | 0.5% |
| Wage and Salary | 0.3% | 0.1% | 0.4% | 0.3% | 0.4% |
| Disposable Income | 0.5% | 0.2% | 0.7% | 0.0% | 0.5% |
| Savings Rate | 3.0% | 2.6% | 2.8% | 3.0% | 3.5% |
| Personal Consumption | |||||
| Total (Nominal) | 0.2% | 0.3% | 0.9% | 0.5% | 0.9% |
| Total (Real, Chain $) | 0.0% | 0.4% | 0.4% | 0.1% | 0.3% |
| Core PCE Deflator | |||||
| Month/Month | 0.2% | 0.1% | 0.3% | 0.2% | 0.3% |
| Year/Year | 3.3% | 3.3% | 3.4% | 3.3% | 3.3% |