Income growth missed forecasts and slowed from May, while consumer spending rose as services and vehicle purchases offset a sharp drop in gasoline outlays tied to lower crude prices.
US personal income increased 0.2% month over month in June 2026, below the 0.3% forecast and down from May’s 0.7% gain, while personal spending rose $65.2 billion, or 0.3%, after an upwardly revised 0.9% increase in May. Income growth was supported by higher employee compensation, stronger asset income, and larger government social benefits, partly offset by weaker farm proprietors' income linked to the timing of payments under the American Relief Act of 2025. Disposable personal income rose 0.2%, and real disposable personal income increased 0.3%. On the spending side, lower crude oil prices following US-Iran peace negotiations helped drive a $48.1 billion decline in gasoline and other energy goods outlays, but services spending rose $58.2 billion and inflation-adjusted consumer spending advanced 0.4%.