Personal income edged up 0.1% (4.6% year-on-year) in July after an upwardly-revised 0.5% gain in June (was 0.4%). The Action Economics Forecast Survey expected 0.3%. Employee compensation grew 0.2% (5.0% y/y), transfers were up a healthy 0.4% (7.1% y/y) and proprietors' income increased 0.5% (3.7% y/y). Meanwhile, receipts from assets fell 0.8% in June (+1.7% y/y). As a result of a 0.9% drop in tax payments (+5.8% y/y), disposable personal income rose 0.3% (4.5% y/y). When adjusted for inflation, disposable income ticked up 0.1% (3.0% y/y).

Personal consumption expenditures grew 0.6% in July, a tad better than the 0.5% anticipated by the Action Economics Forecast Survey. Inflation-adjusted consumption increased 0.4% (2.7% y/y) with goods and services spending up 0.8% (4.5% y/y) and 0.3% (2.0% y/y) respectively. Durable goods spending jumped 1.1% (5.7% y/y) despite a 0.2% decline in vehicles (+2.9% y/y) -- furniture as well as recreation goods and vehicles sales showed strong gains (1.1% and 2.4%; 2.7% and 12.2% y/y respectively).

As a result of the combination of weak income growth and strong spending, the personal savings rate declined to a still healthy 7.7% in July from 8.0% in June.

The personal consumption chain price headline and core indexes both rose 0.2% in July (1.4% and 1.6% y/y respectively).

The personal income and consumption figures are available in Haver's USECON database with detail in the USNA database. The Action Economics figures are in the AS1REPNA database