US Personal Income Surpasses Expectations Amid Steady Inflation

Nominal personal income in the United States rose 0.4% in July, beating expectations of a 0.2% gain.

This was driven by a 0.6% increase in services sector spending, but overall real disposable income only saw a flat reading due to rising inflation.

The Personal Consumption Expenditures (PCE) inflation rate remained steady at 3.7% for the headline figure and 3.3% core measure.

Looking ahead, economists predict that August nonfarm payrolls will increase by about 80K, with unemployment staying put at 4.1% if participation rates rise to 61.5%.