MNI DATA ANALYSIS: US Pers Income Up Flat In June, PCE +0.1%>

--Core PCE Prices +0.1%, As Expected; Y/Y Rate +1.5% Vs 1.5% May 

--Overall PCE Prices Flat; +1.4% Y/Y Vs +1.5% In May

By Sara Haire, Kevin Kastner and Holly Stokes

     WASHINGTON (MNI) - Personal income was unchanged in June, while 

nominal PCE was up 0.1%, and the core PCE price index posted another 

modest 0.1% gain, data released by the Commerce Department Tuesday 

morning showed. 

     The flat reading for personal income was far weaker than the 0.4% 

gain expected, but the readings for nominal PCE and the core price index 

were right on analyst expectations of gains of 0.1% in an MNI survey. 

     The core PCE price index's 1.5% year/year rise was the same as in 

May after an upward revision from 1.4%. The last time the year/year rate 

was lower was in December 2015, when it was 1.4%. 

     The overall PCE price index was flat in June, as energy prices 

posted a 1.7% decrease. The year/year rate for overall prices fell to 

1.4% from 1.5% in May, the lowest since September 2016. 

     The 0.1% gain in current dollar PCE reflected a strong 0.3% rise in 

services that was able to offset a 0.4% decline in total goods spending. 

Durable goods PCE fell 0.4%, while nondurable goods spending fell 0.4%. 

     Real PCE was flat in June, with real spending on durable goods down 

0.1% after inflation adjustment. Nondurables spending saw a 0.2% 

decline, while services spending was able to offset the decline in goods 

with a 0.1% gain. 

     Wages and salaries saw a bump up of 0.4% as payrolls grew strongly, 

but the other income components were mixed, with proprietors' income and 

personal income on assets down while rental income and personal current 

transfer receipts up. 

     Disposable personal income saw a flat reading for the month, while 

real disposable income was down 0.1%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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