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3 Aug 2015
Personal Spending rises 0.2%, income rises 0.4%
FXStreet (Mumbai) - The personal spending in June ticked higher, thereby capping a stronger quarterly performance for the biggest part of the economy.
The 0.2% rise in personal spending was in line with the estimate, but down from the 0.7% (previously reported at 0.9%) rise seen in May. Incomes climbed 0.4% for a third month, beating the estimated rise of 0.3%. The previous month’s print was revised lower to 0.45 from 0.5%.
Disposable income, or the money remaining after taxes, rose 0.2% in June from the prior month after adjusting for inflation. The saving rate climbed to 4.8% from 4.6% in May.
The price index tied to consumer spending, the Fed’s preferred gauge of inflation, increased 0.2% in June from the prior month. It rose 0.3% from June 2014. The core price index climbed 0.1% from May and rose 1.3% in the 12 months ended in June.
The 0.2% rise in personal spending was in line with the estimate, but down from the 0.7% (previously reported at 0.9%) rise seen in May. Incomes climbed 0.4% for a third month, beating the estimated rise of 0.3%. The previous month’s print was revised lower to 0.45 from 0.5%.
Disposable income, or the money remaining after taxes, rose 0.2% in June from the prior month after adjusting for inflation. The saving rate climbed to 4.8% from 4.6% in May.
The price index tied to consumer spending, the Fed’s preferred gauge of inflation, increased 0.2% in June from the prior month. It rose 0.3% from June 2014. The core price index climbed 0.1% from May and rose 1.3% in the 12 months ended in June.