WASHINGTON — The most recent U.S. personal income report adds little to the analysis of the economy because the data already were incorporated into second quarter GDP.
But the data show slightly slower private income gains and a lowering of income in 2013-14 that help explain why the U.S. is in a modest economy.
June personal income posted a 0.4% increase, personal consumption expenditures grew 0.2%, and core PCE prices rose 0.1% for a 1.3% gain over the year.
These are all about as expected.
The data indicate pattern of real PCE was slowing at the end of the quarter. Spending on goods, durables in particular, fell in June.
Likewise, PCE core prices were steady at a 1.3% increase over the year in each month after the revisions, with few policy implications. That pace is hardly cause for alarm.
In June, private wages were up $16 billion, after a $29.6 billion rise in May. Supplements to wages, proprietors' income, rents, personal income receipts and transfers all gained as well. This suggests consumers maintain the ability to spend.
Real disposable personal income posted a 0.2% gain on the month. Savings rose, and the saving rate remained slightly elevated at 4.8% in June.
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