US personal income and expenditure up in June

Personal incomes in the US increased by 0.4% in June according the country’s Bureau of Economic Analysis.

The climb in personal income beat expectations for a 0.3% rise, and was consistent for the third month in a row.

The growth in personal income included 0.2% growth in wages and salaries as well in other categories.

Disposable personal income increased by 0.5%, posting a higher increase than last month’s 0.4% lift.

Personal consumption expenditure increased by $2.59bn, by 0.2% after rising 0.7% in May, suggesting a slowdown.

However Capital Economics said the outlook for US spending remained good despite consumption growth losing some momentum.

“We’re not too worried by this as a further improvement in the labour market should support spending before long,” analysts said.