The U.S. Commerce Department’s Bureau of Economic Analysis today released data on personal income and outlays for July 2011. Personal income rose 0.3 percent in July, slightly below private-sector forecasts of a 0.4 percent increase, though personal income in both May and June was revised upward. Wages and salaries, the largest component of income, rose 0.4 percent. Real consumer spending jumped 0.5 percent, consistent with expectations, representing the largest monthly increase in real consumer spending since August 2009. Spending was boosted by consumer purchases of motor vehicles and higher home electricity costs due to warmer weather.
“Today’s personal income data shows a strong uptick in consumer spending, reflecting gains in the job market,” U.S. Commerce Department Chief Economist Mark Doms said. “Personal income has now increased for 21 straight months and is up 5.3 percent over a year ago. In the months ahead, the president’s intent focus on job creation will drive growth in personal income and consumer confidence, helping to strengthen the U.S. economy.”
Source: U.S. Department of Commerce
