Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income increased at a rate of 0.3 percent (nonannualized) in July, and is up 3.6 percent since July of last year. This follows an increase of 0.3 percent (downwardly-revised) in June, and is in line with the average growth rate throughout the second quarter. Disposable personal income—personal income less current taxes—increased at a rate of 0.3 percent as well, and is up 3.4 percent on a year-over-year basis. There was very little price pressure on the headline number as “real” disposable personal income (DPI after controlling for price changes) was also up 0.3 percent for the month. The year-over-year change in “real” DPI reached 2.1 percent, its highest level since March of 2011, and has accelerated a bit since the beginning of the year. The 3-month trend in year-over-year growth was 1.7 percent in July, compared with a first quarter trend of 0.2 percent and a second quarter trend of 1.3 percent. After being flat in May and slightly negative in June (down 0.1 percent), “real” personal consumption expenditures was back in positive territory, increasing 0.4 percent for the month. Consumption has increased 2.0 percent since July of 2011, which is roughly in line with the average second quarter growth rate of 1.9 percent. Personal savings was down 1.9 percent in July, following increases of 13.1 percent in May and 7.8 percent in June.