Economy

Economic Data Roundup (08/02/2016)

8/2/16 12:00 PM

iStock_000009946822_Small.jpgThe only important economic data released this morning was a report from the U.S. Department of Commerce on consumers’ earnings and outlays. Specifically, personal income for Americans rose by 0.18 percent ($29.3 billion) in June, slightly worse than expected due to an increase in private wages and salaries being partly offset by decreases in personal dividend and interest income. On a year-over-year basis, total personal income rose by 2.67 percent in June, the slowest pace of annual growth since December 2013. Despite this, consumer spending, which accounts for almost 70 percent of the U.S. economy (GDP), increased by 0.42 percent in June, better than economists had anticipated and enough to lift the 12-month gain to 3.72 percent. Unsurprisingly, personal saving as a percentage of disposable personal income, i.e. the personal saving rate, fell to 5.3 percent in June, the lowest reading since March of last year. Elsewhere in the report, the personal consumption expenditures (PCE) core price index, one of the Federal Reserve’s preferred measures of inflation in America, posted a year-over-year rise of 1.57 percent in June. That is down slightly from May and therefore should not provide any additional pressure on Fed officials to move faster with interest rate normalization.

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Sources: Econoday, Bloomberg, Twitter, ZH, Bureau of Economic Analysis, FRBSL

Post author: Charles Couch