Americans' personal income growth, spending both gain pace in July

By Ovunc Kutlu

ISTANBUL (AA) - Americans' personal income growth and personal spending both gained pace in July from the previous month, according to official figures released Friday.

Personal income climbed $75.1 billion, or 0.3%, at a monthly rate in July, according to the US Bureau of Economic Analysis.

The figure came in higher than market estimates of 0.2% and gained its pace from a 0.2% monthly increase seen in June.

"The increase in current-dollar personal income in July primarily reflected an increase in compensation," the agency said in a statement.

Disposable personal income, which is personal income minus personal current taxes, rose $54.8 billion in July, or 0.3%, from the previous month when it was up 0.2%.

Personal spending, meanwhile, also referred to as personal consumption expenditures (PCE), increased $103.8 billion, or 0.5%, in July from the month before.

That figure came in line with the market expectations, while it also showed an acceleration from a 0.3% monthly gain in June.

"The $103.8 billion increase in current-dollar PCE in July reflected an increase of $59.3 billion in spending for services and $44.5 billion in spending for goods," said the agency.

Within services, the largest contributor to the increase was housing and utilities, it added.