Headline Personal Income Up Slightly in June, Spending Increases, GDP Slows

WASHINGTON, DC – Today, the Joint Economic Committee released its Monthly Expenditures Update for June. From May to June, headline personal consumption expenditures (PCE) price index inflation was 0.40 percent, slightly below the 0.45 percent from April to May and even with the 0.40 percent from March to April. Core PCE price index inflation, which excludes food and energy prices, was 0.13, down from the 0.32 percent from May.

In the same period, spending increased while savings decreased slightly. Real PCE increased by 0.40 or $67.96 billion, up from 0.26 percent, or $43.82 billion in May. Real PCE on all services increased by 0.26 percent, or $28.34 billion. Real PCE on all goods increased by 0.73 percent, or $42.03 billion, and the nominal personal savings rate decreased slightly by 0.1 percentage points to 2.7 percent.

From June 2025 to June 2026, headline PCE price index inflation was 3.67 percent, down from May’s ending of 4.07 percent, which is higher than the Federal Reserve’s target of 2 percent. The core PCE price index inflation was 3.29 percent, down from 3.41 percent recorded in May.

Month-over-month, headline personal income increased by 0.20 percent, or $54.9 billion, while real disposable personal income per capita increased by 0.29 percent, which means that after tax income rose more quickly than prices.

For the full Monthly Expenditures Update, visit: https://www.jec.senate.gov/public/index.cfm/republicans/expenditures-update

Additionally, the Joint Economic Committee released its Gross Domestic Product (GDP) Update of Q2 2026, Advance Estimate. Real GDP growth from 2026 Q1 to 2026 Q2 increased by 1.5 percent, slowing from the 2.09 percent in the first quarter. Current-dollar GDP increased by 7.87 percent or $609.489 billion, to a level of $32.475 trillion, the current size of the U.S. economy.

For the full GDP Update, visit: https://www.jec.senate.gov/public/index.cfm/republicans/gdp-update

###