Personal income increased $115.1 billion (0.4 percent at a monthly rate) in July, according to estimates released today by the U.S. Bureau of Economic Analysis (BEA). Disposable personal income (DPI) —personal income less personal current taxes—increased $125.9 billion (0.5 percent), and personal consumption expenditures (PCE) increased $36.3 billion (0.2 percent).

Personal outlays —the sum of PCE, personal interest payments, and personal current transfer payments—increased $36.6 billion in July. Personal saving was $712.0 billion in July, and the personal saving rate —personal saving as a percentage of DPI—was 3.0 percent.

The increase in current-dollar personal income in July primarily reflected increases in compensation, government social benefits, and personal income receipts on assets.

The $36.3 billion increase in current-dollar PCE in July reflected an increase of $86.2 billion in spending on services that was partly offset by a decrease of $49.9 billion in spending on goods.

Real PCE increased…