02:50 PM EDT, 08/30/2024 (MT Newswires) -- Personal income was up 0.3% in July, ahead of expectations, lifted by a 0.3% gain in wages and salaries.

Transfer payments, rental income and proprietors' income also advanced, more than offsetting a decline in return on assets.

Personal consumption expenditures jumped by 0.5% in July after a 0.3% increase in June, boosted by gains in both goods and services spending.

After an adjustment for a 0.2% increase in the PCE price index, real consumption was up 0.4% in July after a 0.3% increase in June. The year-over-year rate for the overall price index remained at 2.5%.

Core PCE prices rose by 0.2% for a second straight month, while the year-over-year rate remained at 2.6%, still above the Federal Reserve's 2% target.

The Chicago PMI rose to 46.1 in August from 45.3 in July. Other manufacturing data already published have also indicated continued contraction in the sector. The ISM's national index is scheduled to be released on Sept. 3.

The University of Michigan consumer sentiment index for August was revised higher to 67.9 from the preliminary estimate of 67.8 and was above July's reading of 66.4.

The report said that inflation expectations declined slightly to 2.8% in August for the one-year period and was unchanged at 3% for the 5-year period.

The Q3 GDPnow estimate from the Atlanta Fed is for a 2.5% gain, revised up from a 2% gain reported on Monday. The next update is scheduled for Sept. 3.