Personal income expenditures rose 0.5% on a monthly basis, while personal income rose 0.3%, according to a report for July by the US Bureau of Economic Analysis published last Friday.
The rise in personal income was largely driven by higher compensation, according to the report, while the rise in outlay was due to higher spending in services and goods. Housing and utilities in the service segment and motor vehicles in the goods segment showed the highest rises in expenditure.
The report comes as food prices increased by 0.2% in July and energy prices by less than 0.1%. Interest rates are expected to come down due to lower inflation, according to analysts.
Notably Americans saved only 2.9% of disposable income.
By Staff
