--US June personal income +0.3%; spending +0.4%
--US June wages and salaries +0.4%
--US June services spending +0.4%; durable goods spending +1.5%
--US June personal saving rate dn to 1.1%; May revised to +1.2%
--US June PCE price deflator +0.2%; core +0.2%
--US May personal income unrevised at +0.2%
--US May personal spending revised to +0.3% from +0.5%

By Andrew Williams
Washington, July 31 (BridgeNews) - U.S. personal income and consumption growth both accelerated in June, gaining 0.3% and 0.4% after rising 0.2% and a revised 0.3% respectively in May, the Commerce Department said Monday. The meager savings rate was fell to 1.1%.
Economists surveyed by BridgeNews had predicted income to rise 0.2% and outlays to gain 0.3%. The Commerce Department said spending on services, anything from utility payments to vacations, rose 0.4%, after having been reported up a revised 0.2% in the prior month. Services make up about 60% of consumer expenditures.
Spending on durable goods like appliances and furniture rose 1.5%, after falling a revised 0.2% in May. Durable goods are those with a lifespan of over three years, such as cars and electrical appliances, meaning they are the most sensitive to changes in interest rates. Meanwhile spending on non-durable goods such as food, clothing and gasoline, fell 0.2%.
On the income side, wages and salaries, which comprise over half of personal income, posted a 0.4% increase, after being revised to unchanged the prior month.
However, disposable income--personal income minus tax and some non-tax payments--rose 0.3%, Commerce said.

INFLATION
The implicit price deflator for personal consumption expenditures, the Federal Reserve's preferred gauge of consumer inflation, rose 0.2%, following a 0.1% gain in May. Excluding volatile food and energy prices, the deflator rose 0.2% following a 0.1% decline the prior month.

WHAT WAS EXPECTED
Estimates of economists surveyed by BridgeNews ranged from up 0.1% to up 0.4% for income, and from 0.2% to up 0.4% for spending.