US Income and Jobs Data Beats Expectations Amid Stable Inflation

Nominal personal income in the United States rose by 0.4% in July, surpassing expectations of a 0.2% increase.

The growth was led by a 0.6% gain in the services sector, with nominal personal spending increasing by 0.2% in the month.

After adjusting for inflation, disposable income rose by 0.4%, while real spending remained flat.

The PCE deflator, a key measure of inflation, held steady at 3.7% on a 12-month basis, matching consensus expectations.

Economists expect the release of August nonfarm payroll figures to show an increase of around 80,000 jobs, keeping the unemployment rate unchanged at 4.1%.