US: Personal Income declines by 1.1% in June, Personal Spending grows by 5.6%

• Personal Income in the US fell more than expected in June.
• Core PCE Price Index dropped to 0.9% on a yearly basis.

Personal Income in the US declined by 1.1% on a monthly basis in June after contracting by 4.4% (revised from 4.2%) in May, the US Bureau of Economic Analysis reported on Friday. This reading came in worse than the market expectation for a decrease of 0.5%. 

Further details of the publication revealed that Personal Spending rose by 5.6% after expanding by 8.2% in May.

Additionally, the core Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred gauge of inflation, ticked down to 0.9% on a yearly basis from 1%.

Market reaction

The US Dollar Index edged slightly higher after these data and was last seen flat on the day at 92.96.