Personal Income and Outlays, July 2023

Historical release narrative reproduced from the official public-domain U.S. Bureau of Economic Analysis source. Statistical tables, charts, standard technical appendices and administrative material are omitted; formatting is adapted for reading. Figures retain the release's original vintage and may have been revised. Consult the linked source for the complete release and current data.

Personal income increased $45.0 billion (0.2 percent at a monthly rate) in July, according to estimates released today by the Bureau of Economic Analysis (table 3 and table 5). Disposable personal income (DPI), personal income less personal current taxes, increased $7.3 billion (less than 0.1 percent) and personal consumption expenditures (PCE) increased $144.6 billion (0.8 percent).

The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.2 percent (table 9). Real DPI decreased 0.2 percent in July and real PCE increased 0.6 percent; goods increased 0.9 percent and services increased 0.4 percent (tables 5 and 7).

The increase in current-dollar personal income in July primarily reflected an increase in compensation that was partly offset by a decrease in personal current transfer receipts (table 3).

The $144.6 billion increase in current-dollar PCE in July reflected increases of $102.7 billion in spending for services and $41.9 billion in spending for goods (table 3). Within services, the largest contributors to the increase were financial services and insurance (led by portfolio management and investment advice services), housing and utilities (led by housing), food services and accommodation (led by food services), and health care (led by outpatient services). Within goods, the largest contributors to the increase were “other” nondurable goods (led by pharmaceuticals and recreational items), food and beverages (led by groceries), and recreational goods and vehicles (led by video, audio, photographic, and information processing equipment and media). Detailed information on monthly PCE spending can be found on Table 2.4.5U.

Personal outlays, the sum of PCE, personal interest payments, and personal current transfer payments, increased $153.8 billion in July (table 3). Personal saving was $705.6 billion in July and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.5 percent (table 1).

Prices

From the preceding month, the PCE price index for July increased 0.2 percent (table 9). Prices for goods decreased 0.3 percent and prices for services increased 0.4 percent. Food prices increased 0.2 percent and energy prices increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.

From the same month one year ago, the PCE price index for July increased 3.3 percent (table 11). Prices for goods decreased 0.5 percent and prices for services increased 5.2 percent. Food prices increased 3.5 percent and energy prices decreased 14.6 percent. Excluding food and energy, the PCE price index increased 4.2 percent from one year ago.

Real PCE

The 0.6 percent increase in real PCE in July reflected an increase of 0.9 percent in spending on goods and an increase of 0.4 percent in spending on services (table 7). Within goods, the largest contributors to the increase were “other” nondurable goods (led by games, toys, and hobbies) and recreational goods and vehicles (led by video, audio, photographic and information processing equipment and media). Within services, the largest contributors to the increase were food services and accommodations (led by food services), financial services and insurance (led by portfolio management and investment advice services), and housing and utilities (led by utilities). Detailed information on monthly real PCE spending can be found on Table 2.4.6U.

Updates to Personal Income and Outlays

Estimates have been updated for April through June1. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2012) dollar DPI and PCE, are provided below for May and June.

1 Revised wage and salary data from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages program for January through March will be incorporated with the comprehensive update of the National Economic Accounts on September 29, 2023.

BEA will release initial results from the 2023 comprehensive update of the National Economic Accounts, which include the National Income and Product Accounts as well as the Industry Economic Accounts, on September 28, 2023. The update will present revised statistics for GDP, GDP by industry, and gross domestic income. Updated monthly personal income and outlays will be released on September 29, along with the August 2023 estimate. For details, refer to Information on Updates to the National Economic Accounts.

The initial results of the comprehensive update of the Regional Economic Accounts will be released on September 29.

GDP by industry and GDP by state news releases for the second quarter of 2023 will be released this fall. BEA will send out an advisory with the exact days and times when they become available.

Personal income by state for the second quarter will be released as scheduled on September 29.