WASHINGTON — Personal income was up 0.4% in July, while nominal PCE was up 0.3%, and the core PCE price index posted a 0.1% gain.
The core price index's 0.1% gain was exactly as expected by analysts in an MNI survey, but the year/year rate slipped to a 1.4% rise from a 1.5% increase in June, hitting its lowest point since a matching 1.4% gain in December 2015.
The July rise in personal income was stronger than the 0.3% gain expected, while the reading for nominal PCE was slower than the 0.4% rise expected.
The overall PCE price index was up 0.1% in July, though energy prices posted a 0.1% decrease. The year/year rate for overall prices held steady at 1.4%, matching June for the lowest since 1.4% in September 2016.
The 0.3% increase in current dollar PCE reflected a 0.6% rise in goods spending and a 0.2% gain in services spending. Durable goods PCE rose 0.6%, while nondurable goods spending rose 0.5%.
Real PCE was up 0.2% in July, with real spending on durable goods up 0.8% after inflation adjustment. Nondurables spending saw a 0.3% gain, while services spending was up 0.2%.
Wages and salaries saw a bump up of 0.5% as payrolls grew strongly, adding to strength in other income components.
Disposable personal income was up 0.3% in the month, while real disposable income was up 0.2%.
