by Calculated Risk on 8/29/2008 09:16:00 AM

From the BEA: July Personal Income and Outlays

Real DPI decreased 1.7 percent in July, compared with a decrease of 2.6 percent in June. Real PCE decreased 0.4 percent, compared with a decrease of 0.1 percent.

So real Disposable Personal Income (DPI) declined in both June and July, as did real Personal Consumption Expenditures (PCE). This suggests that the impact from the stimulus checks is mostly behind us, and there is a good chance PCE growth will be negative in the 2nd half of 2008.

For more, see the WSJ: Consumer Spending Slowed in July As Inflation Continued to Take Toll