Personal income increased $28.6 billion (0.2 percent) in August according to estimates released last week by the government’s Bureau of Economic Analysis.
Disposable personal income (DPI) increased $14.9 billion (0.1 percent) and personal consumption expenditures (PCE) increased $18.0 billion (0.1 percent).
Real DPI decreased 0.1 percent in August and Real PCE decreased 0.1 percent. The PCE price index increased 0.2 percent.
Excluding food and energy, the PCE price index increased 0.1 percent.
The increase in personal income in August primarily reflected an increase in government social benefits to persons and compensation of employees.
Real PCE spending in August decreased $8.4 billion due to a decrease of $20.2 billion in spending for goods that was partially offset by a $9.2 billion increase in spending for services.
Within goods, spending on new motor vehicles was the leading contributor to the decrease. Within services, healthcare spending was a leading contributor to the increase. Detailed information on monthly real PCE spending can be found on Table 2.3.6U.
Personal outlays increased $16.8 billion in August. Personal saving was $522.9 billion in August and the personal saving rate, personal saving as a percentage of disposable personal income, was 3.6 percent.
Check out our Pinterest Page, Facebook, Instagram, or Twitter for more financial tips or visit our website for information about our credit union.