How Americans' spending increased in June 2023?
According to estimates released at the end of July by the Bureau of Economic Analysis U.S. consumers’ personal spending has become bigger. The indicator increased $100.4 billion. Sounds like a huge increase, doesn’t it? To estimate the degree of growth, just look at the amount of the previous month and use the percentage calculator. Then we get 0.5%. This means that in June, compared with the previous months that also published on the bea.gov, personal consumption expenditures increased by only 0.5%.
Experts attribute this growth to increased demand for certain goods ($49.1 billion more) and services ($51.2 billion more). Within services, the largest contributors to the increase were financial services and insurance, housing and utilities, and recreation services. Within goods, the largest contributors to the increase were motor vehicles and parts as well as gasoline and other energy goods. Another important factor is the PCE price index for June which increased 0.2 percent. The changes are not significant, but it is important to take into account that prices for services increased 0.3 percent, while prices for goods decreased 0.1 percent.
What about the income of Americans?
The Bureau of Economic Analysis reports that personal income have also increased, although not in the same way as personal consumption expenditures. It is already known that U.S. consumers’ personal income increased $69.5 billion (0.3 percent at a monthly rate) in June. Excluding personal current taxes, personal income increased $67.5 billion (0.3 percent). Experts explain that this increase primarily reflected an increase in compensation that was partly offset by a decrease in personal income receipts on assets.