WASHINGTON - Personal income and consumption were both flat in June on a seasonally adjusted annual rate, the Commerce Department reported Tuesday.
Core PCE, which excludes food and energy costs, was also flat in June, but increased 1.4% from a year ago. The flat reading in monthly core PCE was the first since a string of three months of unchanged core PCE readings from October to December 2008.
Economists expected personal income to increase 0.2% and for consumption to increase 0.1%, according to the median estimate from Thomson Reuters.
Consumption for May was revised lower to a 0.1% increase from the 0.2% gain initially reported. May incomes increased 0.3%, down from the initial 0.4% rise initially reported.
The decline in the number of temporary workers for the Census subtracted $3.4 billion on an annual rate from federal civilian payrolls in June. Private wage and salary disbursements also decreased in June.
The June savings rate, which is disposable personal income minus consumption, increased 6.4% to the highest level in a year.
Disposable personal income, excluding, taxes was also flat in June after gaining 0.3% in May.
The Commerce Department reported last Friday that core PCE increased 1.1% for the second quarter, in line with economists’ estimates. Core PCE was revised higher for the first quarter to 1.2% from 0.7% reported previously.
