US personal income increased $3.8 billion, or less than 0.1 percent, and disposable personal income (DPI) decreased $4.6 billion, or less than 0.1 percent, in July, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $25.0 billion, or 0.2 percent. The personal savings rate fell.

In June, personal income decreased $133.4 billion, or 1.1 percent, DPI decreased $119.9 billion, or 1.1 percent, and PCE increased $60.9 billion, or 0.6 percent, based on revised estimates. Real disposable income decreased 0.1 percent in July, compared with a decrease of 1.6 percent in June. Real PCE increased 0.2 percent, compared with an increase of 0.1 percent.

The BEA says the pattern of recent changes in personal income reflected selected provisions of the Obama stimulus program worth $787 billion, which is officially known as the American Recovery and Reinvestment Act of 2009. These provisions boosted personal current transfer receipts in May much more than in June. Excluding these receipts, personal income increased $9.4 billion, or 0.1 percent, in July, increased $18.6 billion, or 0.2 percent, in June, and increased $9.6 billion, or 0.1 percent, in May. Excluding these receipts, real DPI decreased less than 0.1 percent in July, following a decrease of 0.2 percent in June, and an increase of 0.1 percent in May.

Real consumer spending (spending adjusted for price changes) increased 0.2 percent in July, after increasing 0.1 percent in June. New auto purchases were the leading contributor, reflecting the effects of the “cash for clunkers” program. Purchases of nondurable goods fell in July.

Personal saving -- DPI less personal outlays – was $458.5 billion in July, compared with $486.8 billion in June.  Personal saving as a percentage of disposable personal income was 4.2 percent in July, compared with 4.5 percent  in June.

SEE: US personal savings rate rises to 4.2% in March from below zero in 2005; Eurozone rises to 15%; Irish rate jumps from 3% in 2007 to 10% in 2009