Personal income and saving dip

Americans are making less and saving less but spending more.

During June, personal income decreased $159.8 billion (1.3 percent) and disposable personal income decreased $143.8 billion (1.3 percent), as personal consumption expenditures increased $41.4 billion (0.4 percent).

These numbers are revised estimates from the statistics released July 31 by the Bureau of Economic Analysis.

In contrast, during May, personal income increased $155.1 billion (1.3 percent), DPI increased $168.7 billion (1.6 percent), and PCE increased $9 billion (0.1 percent).

Certain provisions of the American Recovery and Reinvestment Act of 2009 caused the June change in personal income, boosting personal current transfer receipts during May much more than during June.

Personal outlays, which include PCE, personal interest payments, and personal current transfer payments, increased $32.4 billion during June, in contrast with a decrease of $0.1 billion in May.

PCE increased $41.4 billion, compared with an increase of $9 billion during May.

And personal saving took a dip from May to June.

Personal saving – DPI less personal outlays – was $504.8 billion during June, compared with $681 billion during May.

As a percentage of disposable personal income, personal saving was 4.6 percent during June, compared with 6.2 percent during May.

To view the entire report, visit the Bureau’s Web site.