US personal consumption gallops ahead in July, but PCE inflation falls short
Personal incomes and spending grew more quickly than expected in America last month, even as price pressures fell short of the mark once again.
Incomes and personal expenditures grew by 0.4% and 0.3% in comparison to June, according to the Department of Commerce.
Economists had anticipated increases of 0.3% and 0.4%, respectively.
Furthermore, readings on consumption for the prior two months were revised higher, as was the government's initial estimate for income growth in June.
Revised figures showed consumption rose by 0.3% in May and by a further 0.2% in June, instead of the +0.2% and flat readings, respectively, which had previously been estimated.
However, solid spending came at a cost, in the form a dip in the personal savings rate from 3.6% to 3.5%.
Significantly, the 'core' personal consumptions expenditure price deflator - the Fed's preferred inflaton gauge - slowed from a 1.5% year-on-year rate of advance in June to 1.4% for July.
At the headline level, the PCE deflator was up by 1.4%, unchanged from the prior month.