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The Bureau of Economic Analysis released income, spending, savings, and inflation data for July.
Why it matters: Inflation remains the most important economic data point. It cooled in July but remains historically high.
- Personal Consumption Expenditure (PCE) inflation fell 0.1% from June to July. But it is up 6.3% from a year before.
- Excluding volatile food and energy, prices have been up 4.6 % since last year.
Go deeper:
- Income rose 0.2%, but wages and salaries grew a more robust 0.8%. Inflation-adjusted income rose 0.3% and wages and salaries rose 0.9%.
- Spending rose 0.1% in July while inflation-adjusted spending was up 0.2%. Inflation-adjusted spending on both goods and services was up 0.2% each.
- Savings were up slightly, but they continue to decline from pandemic levels as consumers use those savings to keep up with higher prices.
Bottom line: July was a mixed bag. Income and savings were slightly positive. Inflation didn’t get worse, but it didn’t get much better. We aren’t out of the woods, but the stability in July’s data is welcome.
Go deeper:
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· Access this Chamber slide deck [PDF and PowerPoint] with up-to-date economic data and charts.
Information Source: Curtis Dubay, Chief Economist, U.S. Chamber of Commerce
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