Personal income rose 0.4% in July, while disposable personal income increased 0.5%. Consumer spending grew 0.2%, driven by stronger spending on services, which offset a decline in goods spending.

The Bureau of Economic Analysis reports that real consumer spending was essentially flat, rising less than 0.1%. Meanwhile, inflation picked up, with the PCE price index increasing 0.2% in July and rising 3.7% from a year earlier. Core PCE inflation was 3.3% year over year, showing that price pressures remain elevated.

Personal Income and Related Measures
[Percent change from preceding month]
June July
Current-dollar personal income 0.2 0.4
Current-dollar DPI 0.2 0.5
Real DPI 0.3 0.4
Current-dollar PCE 0.3 0.2
Real PCE 0.4 0.0
PCE price index -0.1 0.2
PCE price index excluding food and energy 0.1 0.2

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