Personal income was unchanged in June, while nominal PCE was up 0.1%, and the core PCE price index posted another modest 0.1% gain, data released by the Commerce Department Tuesday morning showed.
The flat reading for personal income was far weaker than the 0.4% gain expected, but the readings for nominal PCE and the core price index were right on analyst expectations of gains of 0.1% in an MNI survey.
The core PCE price index's 1.5% year/year rise was the same as in May after an upward revision from 1.4%. The last time the year/year rate was lower was in December 2015, when it was 1.4%.
The overall PCE price index was flat in June, as energy prices posted a 1.7% decrease. The year/year rate for overall prices fell to 1.4% from 1.5% in May, the lowest since September 2016.
The 0.1% gain in current dollar PCE reflected a strong 0.3% rise in services that was able to offset a 0.4% decline in total goods spending. Durable goods PCE fell 0.4%, while nondurable goods spending fell 0.4%.
Real PCE was flat in June, with real spending on durable goods down 0.1% after inflation adjustment. Nondurables spending saw a 0.2% decline, while services spending was able to offset the decline in goods with a 0.1% gain.
Wages and salaries saw a bump up of 0.4% as payrolls grew strongly, but the other income components were mixed, with proprietors' income and personal income on assets down while rental income and personal current transfer receipts up.
Disposable personal income saw a flat reading for the month, while real disposable income was down 0.1%.
