Personal income increases 0.4% in June

Personal income rose 0.4% to $71.7 billion in June, from May, according to the Bureau of Economic Analysis. Disposal personal income increased 0.4% to $65.3 billion, and personal consumption expenditures increased 0.4% to $57.1 billion.

In June, personal consumption expenditures rose 2.2%, from the same month in 2017. Over the same period, personal consumption expenditures, excluding food and energy, rose 1.9%.

Between May and June, real disposal personal income rose 0.3%, and real personal consumption expenditures increased 0.3%. Real values are inflation-adjusted estimates and do not include the effects of price changes. Excluding food and energy, the personal consumption expenditures index rose 0.1% in June.

The June rise in personal income was a result of increases in wages, salaries and personal dividend income.

The $39.7 billion increase in real personal consumption expenditures was a result of a $36.4 billion rise in spending for services. The rise was largely an increase in spending for food services and accommodations. Spending for goods rose $1.3 billion.

Personal outlays increased $62.7 billion in June. Personal saving was $1.05 trillion, and the personal saving rate, which is personal saving as a percentage of disposal personal income, was 6.8%.