US Income and Spending: Second quarter ends on a low note - Wells Fargo

Analysts from Wells Fargo, point out that Personal income in the US during June was basically unchanged while personal consumption expenditures were up modestly. They warn that in real terms both measures were even weaker. 

Key Quotes: 

“Personal income was almost flat in June, declining $3.5 billion after an increase of $53.2 billion in May. However, the details were not as weak, especially in terms of wages and salaries. Wages and salaries increased $30.8 billion during the month with both goods-producing industries as well as services-producing industries recovering somewhat compared to the previous month. Wages and salaries in the goods sector were up $4.2 billion while they were up $22.9 billion in the services sector.”

“Meanwhile, disposable personal income was flat in June while real disposable personal income was even weaker, down 0.1 percent. After a strong showing during the first five months of the year disposable personal income was, perhaps, one of the biggest changes for the June personal income and spending release.”

“At the same time, both nominal and real personal spending were revised up in May but were almost flat in June. Nominal personal spending was up 0.1 percent after an upwardly revised 0.2 percent increase in May, while real personal spending was flat in June after an upwardly revised 0.2 percent in May.”