The U.S. Commerce Department \ Bureau of Economic Analysis (BEA) is reporting that personal income in June decreased by $222.8 billion or -1.1%. Disposable personal income (DPI) decreased $253.3 billion or -1.4%. Personal consumption expenditures increased by $737.7 billion or +5.6%. Real DPI decreased by -1.8% in June, while Real PCE increased by +5.2%. The PCE price index increased 0.4%. Excluding food and energy the PCE price index only increased 0.2%. The decrease in personal income in June was more than accounted for by a decrease in government social benefits to persons as payments made to individuals from federal economic recovery programs in response to the COVID-19 pandemic continued, but at a lower level than in May. Partially offsetting the decrease in other government social benefits were increases in compensation of employees and proprietors’ income as portions of the economy continued to reopen in June. Unemployment insurance benefits, based primarily on unemployment claims data from the Department of Labor’s Employment and Training Administration, also increased in June.
Personal Income and Outlays, June 2020 and Annual Update