The most recent data release from the Bureau of Economic Analysis (BEA) showed that personal income decreased in June to a seasonally adjusted annual rate (SAAR) of $19,880 billion. It dropped 1.1% in June, after a 4.4% decline in May. This decrease in personal income largely came from the decline in government social benefits, because the majority of one-time stimulus checks had been paid in April. Pandemic unemployment insurance, over the same time, increased $110.7 billion in June, including $58.4 billion in Pandemic Unemployment Assistance, $5.4 billion in Pandemic Emergency Unemployment Compensation, and $85.4 billion in Pandemic Unemployment Compensation Payments. As the economy continued to reopen in June, personal income from wages and salaries increased $197.6 billion for the month.
Real disposable income (income remaining after adjusting for taxes and inflation) was down 1.8% in June after decreasing 5.2% in May. Personal consumption expenditures (PCE) rose 5.6% after a jump of 8.5% in May when the economy started reopening after the ‘stay-at-home’ orders were lifted.
In June, the rise in consumer spending and the drop in personal income drew the personal savings rate down to 19.0%, compared to a record high savings rate of 33.5% in April. Personal savings stood at $3.37 billion (SAAR) in June.