Personal spending up 1.1% in July; core PCE rate continues at 3.6%

• July Personal Income and Outlays: Income +1.1% M/M vs. +0.3% consensus and % prior (revised from +0.1%).
• Government aid during the pandemic, chiefly the child tax credit payments, figures in the personal income increase as well as an increase in private wages and salaries.
• Consumer spending: +0.3% M/M vs. +0.5% consensus and +1.1% prior (revised from +1.0%).
• Consumers spent more on services and less on goods last month. The $42.2B increase in current dollar personal consumption expenditures reflects a $102.6B boost in spending for services an a $60.4B decline in spending for goods.
• Within services, increases were across all categories, led by food services and accommodations, i.e., restaurants and hotels. The decline on spending on goods was also spread across most categories, led by motor vehicles and parts, recreational goods and vehicles, and clothing and footwear.
• PCE Price Index: +0.4% M/M vs. +0.4% consensus and +0.5% prior.
• On Y/Y basis, PCE price index rises 4.2%, slightly higher than the +4.0% rate in June.
• Core PCE Price Index: +0.3% M/M vs. +0.3% consensus and +0.5% prior (revised from +0.4%).
• On Y/Y basis, core PCE price index increases 3.6%, same rate as in June.
• Earlier today, Atlanta Fed Raphael Bostic said there's evidence that rising prices "is going to last longer than people expect it."