Personal income improved 0.4% during July (4.3% y/y) for the fourth straight month. These remain the quickest increases since November and the latest figure matched expectations in the Action Economics Forecast Survey. Wages & salaries increased 0.5% (4.2% y/y), also the firmest rise since November. Rental income firmed 0.7% (8.6% y/y) following even stronger gains during the prior three months. Proprietors income improved 0.8% (2.4% y/y) after a 0.6% rise. Transfer payments rose 0.5% (5.1% y/y) as Medicaid payments jumped 1.5% (9.0% y/y). Unemployment insurance receipts fell 0.3% (-2.9% y/y). Interest income improved 0.1% (2.9% y/y) but dividend receipts eased slightly (+4.9% y/y).

Disposable personal income increased 0.5% (3.6% y/y) after three months of 0.4% improvement. Adjusted for price changes, take-home pay rose 0.4% (3.3% y/y), the strongest rise in six months.

Personal consumption expenditures improved 0.3%, the same as in June which was revised from 0.2%. The increase missed expectations for a 0.4% rise in the Action Economics Forecast Survey. Adjusted for price inflation, spending rose 0.2% overall (3.2% y/y). Real durable goods purchases gained 1.3% (6.2% y/y) and reflected a 2.6% increase (5.7% y/y) in motor vehicle purchases. Durable household equipment spending gained 1.0% (6.5% y/y) but clothing & footwear purchases rose just 0.2% (3.9% y/y). Real gasoline purchases eased 0.5% (+3.5% y/y), down for the third month in the last four. Constant dollar services purchases notched 0.1% higher (2.8% y/y), the weakest rise in the last four months.

The personal savings rate rose to 4.9% from 4.7%. The rate nevertheless was below a February high of 5.4%. Personal saving increased 3.8% during the last twelve months.

The chain price index nudged 0.1% higher (0.3% y/y), the weakest rise in three months. Energy prices gained 0.1% (-15.7% y/y), after two months of strong increase, while food prices improved 0.2% (0.9% y/y), about the same as during June. Durable goods prices eased 0.2% (-2.1% y/y) but nondurable goods prices edged 0.1% higher (-3.0% y/y). Services prices improved 0.1% (1.8% y/y) after four straight months of 0.2% increase. The price index excluding food & energy notched 0.1% higher (1.2% y/y) for the fourth straight month.

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