Americans' personal income growth, spending slow down in June from previous month

ISTANBUL

Americans' personal income growth and personal spending both slowed down in June from the previous month, according to official figures released Friday.

Personal income climbed $50.4 billion, or 0.2%, at a monthly rate in June, according to the US Bureau of Economic Analysis.

The figure came in lower than market estimates of 0.4% and slowed its pace from a 0.4% monthly increase seen in May.

"The increase in current-dollar personal income in June primarily reflected increases in compensation and personal current transfer receipts," the agency said in a statement.

Disposable personal income, which is personal income minus personal current taxes, rose $37.7 billion in June, or 0.2%, from the previous month when it was up 0.5%.

Personal spending, meanwhile, also referred to as personal consumption expenditures (PCE), increased $57.6 billion, or 0.3%, in June from the month before.

That figure also showed a slowdown from a 0.4% monthly gain in May, but came in line with the market expectations of a 0.3% gain.

"The $57.6 billion increase in current-dollar PCE in June reflected an increase of $53.1 billion in spending for services and an increase of $4.5 billion in spending for goods," said the agency.

Within services, the largest contributors to the increase were other services, led by international travel, and housing and utilities.

Within goods, the largest contributors to the increase were other non-durable goods, led by pharmaceutical and other medical products, and recreational goods and vehicles, led by information processing equipment) said the agency.

Personal income figure for May, meanwhile, was revised down to $98.7 billion from $114.1 billion, or to 0.4% from 0.5%.

Disposable personal income for May also saw a downward revision to $76.3 billion from $94 billion.

Personal consumption expenditures for May, on the other hand, was significantly revised upward to $83.7 billion from $47.8 billion.

Personal outlays increased $59.3 billion in June, according to the US Bureau of Economic Analysis. The figure reflects the sum of personal consumption expenditures, personal interest payments, and personal current transfer payments.

Total personal saving, meanwhile, came in at $703 billion last month.

The personal saving rate, which shows personal saving as a percentage of disposable personal income, stood at 3.4% in June, down from 3.9% in May.