Personal Income was essentially flat in July, increasing by $3.8 billion to $11,957.4 billion, was expected to increase by 0.1%, following a 1.1% reduction in June (revised upwards from a 1.3% drop). Net of taxes, Disposable Personal Income was also flat in July, down $4.6 billion, to $10,8798 billion. The pattern of recent changes in personal income reflected selected provisions of the American Recovery and Reinvestment Act of 2009. These provisions boosted personal current transfer receipts in May much more than in June. Excluding these receipts, which are discussed more fully below, personal income increased by 0.1%, $9.4 billion, in July. Excluding these receipts, real DPI decreased less than 0.1% in July. Personal Consumption Expenditures increased by 0.2%, less than the expected 0.3% increase, following a 0.6% increase in June (revised upwards from a 0.4% increase). As incomes were flat and spending grew, the Personal Savings Rate fell to 4.2% of disposable income in July, from 4.6% in June, and down from 6.2% in May.
Upcoming Releases
ISM Manufacturing Index (09/01 at 10:00 AM EST)
Construction Spending (09/01 at 10:00 AM EST)
Factory Orders (09/02 at 10:00 AM EST)
