Economy

Personal Income Rose 0.4% in June, Beating Consensus Forecast

BEA Reports Downward Revisions to Personal Income Under Obama, Upward Revisions Under Trump

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The Bureau of Economic Analysis (BEA) reported personal income rose $83.6 billion (0.4%) in June, beating the consensus forecast.

Disposable personal income (DPI) increased $69.7 billion, or 0.4%. Real DPI increased 0.3% in June. Consumer spending as gauged by personal consumption expenditures (PCE) increased $41.0 billion, or 0.3%.

	Prior	Consensus Forecast	Forecast Range	Results
Personal Income – M/M ∆	0.5%	0.3%	0.3% to 0.5%	0.4%
Consumer Spending – M/M ∆	0.4%	0.3%	0.2% to 0.4%	0.3%
PCE Price Index M/M ∆	0.2%	0.1%	0.1% to 0.3%	0.1%
Core PCE price index – M/M ∆	0.2%	0.2%	0.2% to 0.3%	0.2%
PCE Price Index Y/Y ∆	1.5%	1.5%	1.4% to 1.7%	1.4%
Core PCE price index – Yr/Yr ∆	1.6%	1.7%	1.6% to 1.8%	1.6%

Consumer spending, which met the forecast for June, rose solidly by 0.4% in May and 0.6% in April. It drove a stronger-than-expected advance estimate for second quarter (Q2) gross domestic product (GDP).

Real PCE rose by 0.2% and the PCE price index rose 0.1%. Excluding food and energy, the PCE price index gained 0.2%.

Important Personal Income Revisions

Most interestingly, the BEA released important revisions dating back to 2014. All downward revisions to personal income gains transpired under the Obama Administration.

All upward revisions to personal income came under the Trump Administration.

Personal income was revised down $0.1 billion, or less than -0.1% in 2014; down $1.8 billion, or less than -0.1% in 2015; and down $4.0 billion, or less than -0.1% in 2016.

It was revised up $47.9 billion, or 0.3% in 2017; and up $249.6 billion, or 1.4% in 2018.

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PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.