FAQs

What is the personal income growth rate in June?

The personal income growth rate in June was 0.2%, down from the previous month’s increase of 0.4%.

What is the current personal savings rate?

The current personal savings rate is 3.4%, which is lower than the 7.4% average rate seen in 2019.

How has inflation impacted real compensation gains?

Inflation has mostly eliminated real compensation gains, leading consumers to dip into savings to support their spending.

Conclusion

The recent data release from the Bureau of Economic Analysis shows that personal income in June saw a slight increase, driven by gains in wages and salaries. However, spending outpaced income growth, leading to a decrease in the personal savings rate. As inflation continues to impact real compensation gains, consumers are using their savings to support spending, which may ultimately slow down consumer spending in the future.