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FRIDAY August 29, 2008

INCOME GROWTH AFFECTED BY REBATES
Real Consumer Spending Declines in July
Average
growth,
last 12
months
Personal income decreased 0.7 percent in July, after
increasing 0.1 percent in June. The difference reflects rebates
provided by the Economic Stimulus Act of 2008.1 Excluding
the rebates, personal income grew 0.5 percent in July, after
increasing 0.3 percent in June.
Real disposable personal income (DPI), income adjusted
for inflation and taxes, fell 1.7 percent in July after falling
2.6 percent in June. Excluding rebates, real DPI decreased
0.1 percent in July after decreasing 0.4 percent in June.1

Personal
Income1

June

July

0.1%

–0.7%

0.3%

0.5%

–2.6%

–1.7%

–0.4%

–0.1%

0.3%

Excluding Rebates

Real DPI1

0.1%

Excluding Rebates

Real consumer spending (personal consumption
expenditures) decreased 0.4 percent in July after decreasing
0.1 percent in June.
PCE prices rose 0.6 percent in July after rising 0.7 percent
in June. Excluding food and energy, prices rose 0.3 percent,
the same as in June.

Real PCE

0.1%

–0.1%

–0.4%

PCE
Prices

0.4%

0.7%

0.6%

1

Only some rebates—those reported as transfer payments—are
included in personal income. All rebates are included in real DPI.
For more information see FAQ.

Real Disposable Personal Income and
Real Consumer Spending
6.0

Percent change (monthly)

5.0

Real Disposable
Personal Income

4.0
3.0
2.0

Real Disposable
Personal Income
Excluding Rebates

1.0
0.0
-1.0

Real Consumer
Spending

-2.0
-3.0

Apr

May

Jun

Jul

BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and
economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available.
NOTE: On September 29, 2008, the August estimates of Personal Income and Outlays will be released.
Contact: Ralph Stewart 202–606–2649

Bureau of Economic Analysis, U.S. Department of Commerce