American Income Increases – How It Breaks Down
Americans are making more money these days, but they’re also spending more.
Personal income increased $54.8 billion (0.3 percent) in July according to estimates released by the government’s Bureau of Economic Analysis.
Disposable personal income (DPI, or after-tax income) increased $52.5 billion (0.3 percent) and personal consumption expenditures (PCE) increased $49.3 billion (0.4 percent).
Real DPI increased 0.2 percent in July and Real PCE increased 0.2 percent.
The PCE price index increased 0.1 percent.
Excluding food and energy, the PCE price index increased 0.2 percent.
The increase in personal income in July primarily reflected increases in wages and salaries, personal dividend income, and rental income.
The $29.6 billion increase in real PCE in July reflected 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 outlays increased $52.7 billion in July. Personal saving was $1,048.1 billion in July and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.7 percent.
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