US personal incomes undershoot forecasts in June, inflation dips

26th Jul 2024 13:35

(Sharecast News) - Americans continued to spend at a steady pace in June while inflation slowed alongside.

Income growth however was lower than anticipated.

According to the Department of Commerce, in seasonally adjusted terms personal incomes and spending grew by 0.2% and 0.3% month-on-month.

Economists had pencilled in increases of 0.4% and 0.3%, respectively.

Worth noting, personal consumption expenditures for April and May were both revised higher.

On the prices front meanwhile, the rate of increase in headline PCE inflation picked up to 0.1% over the month after a flat reading in May.

That saw the year-on-year rate of price gains ebb from 2.6% to 2.5%, as anticipated.

Core PCE prices on the other hand rose by 0.2% on the month, so that the annual rate was steady at 2.6% (consensus: 2.5%).

The Federal Reserve targets 2.0% inflation as measured by core PCE prices.

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