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Investing

Personal Income and Spending Rise in June, but Not Massively

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By Jon C. Ogg Published
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With the Labor Department reporting unemployment and payrolls for July, the report on personal income and spending for June may seem like a bit of an afterthought. Fortunately, this report also may cool some of those wage inflation fears that had been seen on Thursday from the Employment Cost Index for the second quarter. That report fueled fears that wage inflation was finally returning.

Friday’s report showed that personal income rose by 0.4% in June, right in line with the 0.4% expected by Bloomberg. Consumer spending in June was also up by 0.4%, and right in line with the 0.4% expected.

Another fortunate reading was that the PCE Index was up by 0.2%, right where Bloomberg had the consensus estimate. And the Core PCE Index was up by only 0.1% — also as expected.

Personal income rose 0.4% in May, after having risen by 0.3% in April. Again, nothing seems out of line here.

There is nothing earth-shattering here that should spook the markets by any unexpected amount. This won’t send any investors into panic or euphoria.

After dropping 317 points on Thursday, and after having been down almost another 100 points in futures earlier on Friday, the DJIA futures were down only about 15 points about 20 minutes ahead of the 9:30 a.m. Eastern Time opening bell. Nasdaq futures even briefly went positive.

ALSO READ: It Is Not Too Late to Crash-Proof Your Portfolio for August and the Rest of 2014

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

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