In June 2024, personal income increased by $50.4 billion, up 0.2% month-over-month, according to estimates from the U.S. Bureau of Economic Analysis. Personal disposable income (DPI), which represents income after taxes, increased by $37.7 billion, up 0.2%. Personal consumption expenditures (PCE), on the other hand, increased by $57.6 billion, up 0.3%.
As for the PCE price index, it increased by 0.1%, while the PCE excluding food and energy increased by 0.2%. As for the real retail price index, it increased by 0.1% in June, and the real PCE index increased by 0.2%. Prices of goods and services also increased by 0.2% each.
Personal Income and Expenditures Data for June 2024: Personal income in current dollars increased in June 2024 primarily due to increases in compensation and personal current transfer receipts.
Personal Consumption Expenditures: Personal consumption expenditures in current dollars increased by $57.6 billion in June, broken down as follows: Spending on services: increased by $53.1 billion, with major contributions from other services (led by international travel) and housing and utilities (led by housing)
Spending on goods: increased by $4.5 billion, with major contributions from other nondurable goods (led by pharmaceuticals and medical products) and recreational vehicles (led by information processing equipment) However, these increases were partially offset by declines in spending on motor vehicles and parts (led by new motor vehicles), gasoline, and other energy goods.
Personal Spending: Personal expenditures—which include the sum of personal consumption expenditures, personal interest payments, and personal current transfer payments—increased by $59.3 billion in June.
Personal Savings: Personal savings were $703.0 billion in June, while the personal savings rate, as a percentage of disposable personal income, was 3.4%.
Personal Consumption Expenditures and Prices Analysis for June 2024
Personal Consumption Expenditures (PCE) Price Index:
Monthly Increase: The PCE price index for June increased by 0.1%.
Goods Prices: Decreased by 0.2%. Services Prices: Increased by 0.2%. Food Prices: Increased by 0.1%. Energy Prices: Decreased by 2.1%. Excluding food and energy, the PCE price index increased by 0.2%. Monthly details can be found in Table 2.4.4U.
Year-Over-Year Increase: The PCE price index for June increased by 2.5% compared to the same month last year.
Goods Prices: Decreased by 0.2%. Services Prices: Increased by 3.9%. Food Prices: Increased by 1.4%. Energy prices: Up 2.0%. Excluding food and energy: The index rose 2.6% year-over-year.
Real Personal Consumption Expenditures (Real PCE): Real personal consumption expenditures increased 0.2% in June, with spending on goods and services contributing equally to the increase, up 0.2% each.
Goods: Recreational goods and vehicles (led by information processing equipment) contributed to the increase.
Services: Housing and utilities were the largest contributors to the increase.
Income and Expenditures Updates: The estimates for April and May have been updated, including adjustments to current dollar personal income, the Consumer Price Index, and current and serial (2017) dollar personal consumption expenditures for April and May.
June 2024 Data Updates: Personal income: Up $50.4 billion, up 0.2% month-over-month.
Disposable personal income (DPI): Up $37.7 billion, up 0.2%.
Personal Consumption Expenditures (PCE): Increased $57.6 billion, up 0.3%.
PCE Price Index:
MoM: Up 0.1%.
Goods Prices: Down 0.2%.
Services Prices: Up 0.2%.
Food Prices: Up 0.1%.
Energy Prices: Down 2.1%. Excluding food and energy: Index up 0.2%.
Year-over-year: Index up 2.5% year-over-year.
Real Personal Consumption Expenditures (PCE):
Monthly increase: 0.2%. Goods: Recreational goods and vehicles (led by information processing equipment) contributed to the increase.
Services: Housing and utilities were the largest contributors to the increase.
Personal savings: Personal savings: $703.0 billion. Personal savings rate: 3.4% as a percentage of disposable personal income.
Updates to previous data: The estimates for April and May have been updated, including adjustments to current-dollar personal income, the consumer price index, and personal consumption expenditures in current and serial (2017) dollars.
Details on the impact of economic factors:
Impact on the economy: How increases in personal income and consumer spending affect economic growth. Are there signs of rising inflation or a slowdown in the economy?
Impact on monetary policy: How spending and income data might influence the central bank’s monetary policy decisions. Are there expectations for interest rate hikes or cuts?
Compared to previous years: Long-term trends: Compare current data with previous years to identify any major changes in economic trends. Trend analysis: How do increases or decreases in income and expenditures align with historical trends?
Sector impacts: Major sectors: Analyze the impact of increases in spending on goods and services on major industries, such as financial services and consumer goods.
Regional impacts: Whether there are significant differences in the data at the state or regional level.
Forward-looking: Economic analysis: Economists’ expectations for how these numbers will develop in the coming months. Do they expect income and expenditures to continue to rise?
Market outlook: How this data might impact stock and bond markets, and currency markets.
Estimate revisions: Previous data updates: Any additional revisions to April and May data. Were there significant changes to previously published numbers?
Inflation impact: Inflation impact: How increases in the prices of goods and services affect people’s purchasing power. Inflation measurement: Compare the rate of increase
