Real Disposable Income Rises in June

The U.S. Department of Commerce released data on real personal income, and the news was generally positive.

Personal income increased 0.4 percent in June, the same increase as in May. Wages and salaries, the largest component of personal income, increased 0.5 percent in June after increasing 0.2 percent in May.

Current-dollar disposable personal income (DPI), after-tax income, increased 0.4 percent in June after increasing 0.3 percent in May.

Real DPI, income adjusted for taxes and inflation, increased 0.3 percent in June after increasing 0.2 percent in May.

Real consumer spending (PCE), spending adjusted for price changes, increased 0.2 percent in June after increasing 0.3 percent in May. Spending on durable goods decreased 0.1 percent in June after increasing 1.3 percent in May.

PCE prices increased 0.1 percent in June, the same increase as in May. Excluding food and energy, PCE prices increased 0.2 percent in June, the same increase as in May.

Personal saving rate as a percent of DPI was 8.1 percent in June and 8.0 percent in May.

Real Consumer Income, June 2019