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Nominal personal income increased at a nonannualized rate of 0.3 percent in June. This follows an increase of 0. 4 percent in May and over the past year, nominal personal income has increased 3.1 percent. Disposable personal income (DPI)—nominal personal income less current personal taxes—also increased 0.3 percent in June and is up 1.9 percent over the past twelve months. After controlling for price changes, real DPI decreased 0.1 percent in June, following increases of 0.2 percent in both April and May. On a year-over-year basis, real DPI has increased 0.6 percent.
Following increases of 0. 1 percent in both April and May, real personal consumption expenditures (PCE) also increased 0.1 percent in June. Since last year, consumption has increased 2.0 percent. The increase in real PCE over the past two months has primarily come from goods consumption, which has increased 0.6 and 0.4 percent in May and June, respectively. A large contributor to the increases in goods consumption recently has been the strength of the consumption of durable goods, which averaged monthly growth rates of 0.7 percent during the second quarter. Goods consumption has increased 4.2 percent over the past year, while consumption of services, which was flat in June, has increased just 0.9 percent on a year-over-year basis. Additionally, the personal savings rate ticked down 0.2 percentage points to 4.4 percent.