Personal income increased 0.4 percent while consumer spending increased 1.9 percent in July, according to estimates released today by the Bureau of Economic Analysis.
The increase in personal income in July was more than accounted for by compensation of employees as portions of the economy continued to reopen. Proprietors’ income and rental income of persons also contributed to the increase.
Partially offsetting these increases were decreases in government social benefits and income on assets. Unemployment insurance benefits, based primarily on unemployment claims data from the Department of Labor’s Employment and Training Administration, decreased in July. For more information, see “How will federal government responses to the COVID-19 pandemic affect unemployment insurance benefits?”. Additional information on factors affecting monthly personal income can be found in “Effects of Selected Federal Pandemic Response Programs on Personal Income”.
Consumer spending increased in July, reflecting increases in both goods and services.
- Within goods, the leading contributor to the increase was spending for new motor vehicles, based primarily on unit sales from Ward’s Automotive Sales Report.
- Within services, the leading contributors to the increase were spending for health care as well as food services and accommodations. Within health care, both hospital and outpatient services increased, based on volume data for hospital services and outpatient visits as well as credit card data. Spending for food services and accommodations was based on Census Monthly Retail Trade Survey data and Smith Travel Research data.
For more information, read the full report.