Income Up Slightly In July, Spending Decreased

Personal income decelerated in July after two strong months. Personal income rose 0.2 percent in July after gains of 0.5 percent in both June and May. The wages & salaries component followed a similar track, advancing 0.2 percent in July after increases of 0.4 percent in each of the prior two months. Personal spending unexpectedly declined 0.1 percent after a 0.4 percent jump in June. PCE inflation slowed to a monthly 0.1 percent in July from 0.2 percent in June. The latest figure equaled expectations. Core PCE inflation posted at 0.1 percent-the same pace as in June. Analysts projected 0.1 percent.