Income & Spending Both Came Up Short in July Even as Inflation Cooled

Source: Economics Group of Wells Fargo Bank, N.A.Summary Personal income grew just 0.2% in July, well short of expectations, owing to a drop in proprietors’ income and rental income; elsewhere, real income was solid. Prices edged 0.1% lower, putting the PCE deflator at 6.3%, year-over-year. Real consumer spending increased a scant 0.2%. So Much for Our Retrenchment in Durable Goods Spending Real personal consumption increased 0.2% in July, driven by a 1.5% pick-up in durable goods outlays and a more modest 0.2% gain in the much-larger services category (chart). These gains were offset by a continued decline in non-durable goods spending which fell 0.5% for the second straight month. READ FULL ARTICLE>>