August 4, 2021
According to Bureau of Economic Analysis, personal income climbed $26.1 billion (0.1%) in June. Personal consumption expenditures (PCE) rose $155.4 billion (1.0 percent) but disposable personal income (DPI) dropped $2.6 billion (less than 0.1 percent).
In June, the real DPI fell 0.5%, but the real PCE rose 0.5%; goods fell 0.2%, while services rose 0.8%. The PCE price index grew by 0.5%. The PCE price index improved 0.4% excluding food and energy.
Personal income increased in June, primarily due to an increase in compensation for employees. Within compensation, the rise was led by increases in private wages and salary.
In June, the $155.4 billion rise in PCE was largely attributable to a $29.3 billion increase in goods expenditure and a $126.1 billion increase in services spending. Increases in energy and other non-durable products were primarily responsible for the rise in non-durable goods. The decline in durable goods was largely attributable to the decline in motor vehicles and components. The drop was similarly concentrated in the services sector.
In June, personal spending grew by $158.7 billion. In June, personal savings were $1.70 trillion, with a personal saving rate of 9.4% of disposable personal income.
The PCE price index increased 4.0% in June compared to the same month last year, showing rises in both goods and services. The cost of energy grew by 24.2%, while the cost of food increased by 0.9%. The PCE price index for June jumped 3.5% from a year ago, excluding food and energy.
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