July US Income, Spending, Prices All Increase

08:46 AM EDT, 08/26/2026 (MT Newswires) -- Personal income rose by 0.4% in July following June's 0.2% gain, larger than the expected 0.2% gain in a survey conducted by Bloomberg as of 6:10 am ET. Personal consumption expenditures were up 0.2%, above the 0.1% increase expected and following a 0.3% gain in the previous month. After adjustment for inflation, real PCE held steady, as expected, after a 0.4% increase in June. The PCE price index rebounded by 0.2%, faster the 0.1% gain expected, keeping the year-over-year rate at 3.7%. The price index fell by 0.1% month-over-month in June. The core PCE price index increased by 0.2%, as expected and following a 0.1% gain in June. The year-over-year rate remained at 3.3% in the month. The monthly report on personal income and spending is released by the Bureau of Economic Analysis about one month after the period it is measuring. Personal income is broken down into various categories, with wages making up the largest portion. Spending is reported in two ways-before and after adjustment for inflation movements. The price measures in the report are closely watched by the Federal Reserve, particularly the year-over-year. Faster consumption growth is usually a positive for stocks but combined with soft income readings could suggest consumers are overextending. Bonds are sensitive to the price measures if the pace is above the Federal Reserve's 2% target.