Personal income increased by $115.1 billion, representing a monthly increase of 0.4 percent, according to estimates released by the U.S. Bureau of Economic Analysis.
Disposable personal income, which is personal income minus personal current taxes, rose by $125.9 billion, or 0.5 percent. Personal consumption expenditures increased by $36.3 billion, a 0.2 percent rise.
The increase in current-dollar personal income primarily resulted from gains in compensation, government social benefits, and personal income receipts on assets.
Within compensation, the growth was driven by private wages and salaries. Increases in government social benefits were led by Medicaid and Medicare. Personal income receipts on assets were primarily driven by personal dividend income.
Personal outlays, which include personal consumption expenditures, personal interest payments, and personal current transfer payments, increased by $36.6 billion in July.
The $36.3 billion increase in personal consumption expenditures reflected an $86.2 billion increase in spending on services, which was partially offset by a $49.9 billion decrease in spending on goods. Real personal consumption expenditures increased by $1.3 billion, or less than 0.1 percent at a monthly rate.
The PCE price index for July increased by 0.2 percent. When excluding food and energy, the index also increased by 0.2 percent.
Compared to the same month one year ago, the PCE price index for July increased by 3.7 percent. The index excluding food and energy increased by 3.3 percent from one year ago.
Personal saving was recorded at $712.0 billion in July, resulting in a personal saving rate of 3.0 percent.
The 2026 annual updates for national, industry, and regional data are scheduled to begin on September 30, 2026.
