Americans splash out in June but price growth ebbs

(Sharecast News) - Americans took out from their savings again to finance increased spending at the end of the second quarter. According to the U.S. Department of Labor, in seasonally adjusted terms, personal incomes grew by 0.3% month-on-month in June (consensus: 0.5%).

Personal consumption expenditures meanwhile jumped by 0.5% on the month (consensus: 0.4%).

In parallel, the personal savings rate declined by three tenths of a percentage point versus the month before to 0.3%.

Month-on-month income and PCE growth for May were both revised up by one tenth of a percentage point to 0.5% and 0.2%, respectively.

On the inflation front, the headline PCE price deflator fell back from a year-on-year rate of 3.8% in May to 3.0% (consensus: 3.1%).

At the core level it retreated from 4.6% to 4.1% (consensus: 4.2%).

In comparison to May, both headline and core PCE prices increased by 0.2%.

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