The most recent data release from the Bureau of Economic Analysis (BEA) showed that personal income rose 0.4% in June, an increase of the same margin for the fourth consecutive month. Gains in personal income are largely driven by increases in compensation of employees. Year over year, personal income increased by 3.3%. Real disposable income, income remaining after adjusting for taxes and inflation, inched up 0. 3% in June after a 0.2% gain in May and 0.1% increase in April.

Personal consumption expenditures (PCE), which make up more than two-thirds of the economy, climbed 0.3% in June after a 0.5% gain in May. Inflation-adjusted spending, increased 0.2% in June following a 0.3% increase in May.

Personal savings increased to $1,336 billion in June, accounting for 8.1% of disposable income in June. The savings rate rose with the onset of the Great Recession as households repaired their balance sheets. More recently, the savings rate has been on an upward trend since 2016, a possible impact due to tax reform.