The Bureau of Economic Analysis (BEA) is reporting that personal income increased $70.5 billion (0.4%) in July. Disposable personal income (DPI) increased $39.9 billion (0.2%) and personal consumption expenditures (PCE) increased $267.6 billion (1.9%). Real DPI decreased – 0.1% in July and Real PCE increased 1.6%. The PCE price index increased 0.3%. Excluding food and energy, the PCE price index increased 0.3%. In the report the BEA concludes that the increase in personal income in July was more than accounted for by compensation of employees as portions of the economy continued to reopen. Proprietors’ income and rental income of persons also contributed to the increase. On the other side of the ledger, partially offsetting these increases were decreases in government social benefits and income on assets. Unemployment insurance benefits, based primarily on unemployment claims data from the Department of Labor’s Employment and Training Administration, decreased in July.
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