Personal Income, Disposable Income, and Personal Consumption Expenditures All Increase in July

The US Bureau of Economic Analysis (BEA) reported on Thursday (8-31-23) that according to its estimates, personal income (PI) increased $45.0 billion, or 0.2%, in July. Disposable personal income (DPI), personal income less personal current taxes, increased $7.3 billion, or less than 0.1%. Personal consumption expenditures (PCE) increased $144.6 billion, or 0.8%.

The PCE price index increased 0.2% in July. Excluding food and energy, the PCE price index also increased 0.2%. Real DPI decreased 0.2% and real PCE increased 0.6%; goods increased 0.9% and services increased 0.4%.

Year-over-year, the PCE price index increased 3.3%. Prices for goods declined 0.5%, while prices for services increased 5.2%. Food prices increased 3.5%, while energy prices declined 14.6%. Excluding food and energy, the PCE price index increased 4.2% from one year ago.

Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $153.8 billion in July. Personal saving was $705.6 billion, and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.5%.