The most recent data release from the Bureau of Economic Analysis (BEA) showed that personal income edged up in June to a seasonally adjusted annual rate (SAAR) of $20,414 billion. The increase in personal income was largely due to the increase in compensation of employees, which was partly offset by the declines in the government social benefits, including the economic impact payments and the pandemic unemployment compensation. Real disposable income (income remaining after adjusting for taxes and inflation) was down for three consecutive months: 15.8% down in April, 3.2% down in May and 0.5% down in June. Personal consumption expenditures (PCE) rose 1% in June after a decline of 0.1% in May.
The personal savings rate decreased to 9.4%, as people spent more in June. The personal savings rate slipped down from the record high rate of 33.8% in April 2020. It remains a slightly elevated at an annual pace of $1.7 billion.