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Nominal personal income increased at a nonannualized rate of 0.1 percent in July, which follows increases of 0.3 percent in both May and June, respectively. Since last July, nominal personal income has increased 3.3 percent. Disposable personal income (DPI)—nominal personal income less current personal taxes—increased 0.2 percent during the month and has increased 2.2 percent over the past year. After controlling for price changes, real disposable personal income increased 0.1 percent in July, following 0.2 percent decline in June. The July improvement in real DPI is similar to the average increases during the second quarter of this year, and on a year-over-year basis, inflation-adjusted disposable income has increased 0.8 percent.
Real personal consumption expenditures (PCE) also increased 0.1 percent in July, following a 0.2 percent increase in June. The slight July improvement was driven by goods consumption, which increased 0.4 percent, while services consumption declined 0.1 percent. Within goods consumption, consumption of durable goods increased 0.1 percent and consumption of nondurable goods increased 0.5 percent. Over the past year, real PCE has increased 1.7 percent. The similar improvements in both income and consumption caused the personal savings rate, which is measured as personal saving as a percentage of disposable personal income, to remain steady at 4.4 percent.