02:34 PM EDT, 07/26/2024 (MT Newswires) -- Personal income was up 0.2% in June, below expectations, led by a 0.3% gain in wages and salaries and increases in transfer payments and return on assets that was offset by declines in rental income and proprietors' income.

Personal consumption expenditures rose by 0.3% in June after a 0.4% increase in May, lifted by gains in both goods and services spending.

After an adjustment for a 0.1% increase in the PCE price index, real consumption was up 0.2% in June after a 0.4% increase in May. The year-over-year rate for the overall price index slowed to 2.5% from 2.6%

Core PCE prices rose by 0.2% in the month after a 0.1% gain, keeping the year-over-year rate at 2.6%.

The University of Michigan consumer sentiment index for July was revised higher to 66.4 from the preliminary estimate of 66.0 but was below June's reading of 68.2.

Michigan said that one-year inflation expectations declined to 2.9% in July and held steady at 3% for the five-year period.

The Kansas City Fed's services index fell to minus 4 in July from 2 in June. Other regional services data already released have been mixed.

The initial Q3 GDPnow estimate from the Atlanta Fed is for a 2.8% gain. The next update is scheduled for Aug. 1.