Americans are making more and spending more, according to a June Personal Income and Outlays report (link opens as PDF) released today by the Commerce Department.
After increasing a revised 0.4% in May, personal income edged up $45.4 billion (0.3%) in June, missing analysts' mark by 0.1 percentage points.
For the same period, personal spending increased $59.4 billion (0.5%). In this case, analysts' estimates of 0.4% growth proved slightly too conservative after May's revised 0.2% gain . This uptick in spending was accompanied by a 0.2-point decrease in saving -- Americans saved 4.4% of their personal income in June. In a potential sign of longer-term economic optimism, durable goods spending increased another 0.9% on top of May's 0.6% growth.
Overall inflation hit analysts' 0.4% expectation on the mark. Excluding more volatile food and energy prices, analysts' 0.1% growth estimate came in just below the actual 0.2% increase.