June Personal Income Up 0.4%; Spending Rises 0.4%

WASHINGTON — June personal income posted a 0.4% increase, personal consumption expenditures rose 0.4% in their best gain since March, and core PCE prices were up 0.1% for a 1.5% gain over the year.

These were slightly better than expected.

Real PCE shows acceleration over Q2, at a 0.1% dip for April, a 0.1% rise for May, and a 0.2% slip for June, suggesting there is momentum. Also, there is modest inflation that probably will be endorsed ahead by lower gasoline prices. Overall PCE prices were up 1.6% over the year.

Spending is being supported by a $28.9 billion June gain in private wages where services pay gained nicely.

Supplements, proprietors' income, rents, income receipts and transfers all rose. These data incorporated preliminary Q1 wage data that was provided by 18 key states.

Consumers chose to spend rather than save. The savings rate was unchanged at 5.3%.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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