US personal income increased 0.4% in July, exceeding economists’ 0.3% expectation and accelerating from a revised 0.2% rise in June, according to the Bureau of Economic Analysis. Growth was broad-based across wages and salaries and government transfer payments, while a tight labor market and steady job gains continued to support earnings. Moderating inflation also improved consumers’ real purchasing power. Personal consumption expenditures (PCE), a measure of household spending, rose 0.5% in July after increasing 0.3% in June. The savings rate ticked down slightly, suggesting some consumers used savings to fund purchases. The figures arrive as the Federal Reserve, the US central bank, weighs its next interest-rate decision. Strong income growth could sustain demand and price pressures, while a modest increase in the PCE price index may give policymakers room to hold rates steady. The report points to a resilient consumer and solid labor market, offering a positive signal for third-quarter economic growth as investors and policymakers await further inflation and monetary-policy clues.