Updated: 27-Sep-24 09:24 ET
| August Personal Income and Spending |
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| Updated: 27-Sep-24 09:24 ET |
Highlights
- Personal income increased 0.2% month-over-month in August (Briefing.com consensus 0.4%) following a 0.3% increase in July.
- Personal spending increased 0.2% (Briefing.com consensus 0.3%) following a 0.5% increase in July.
- The PCE Price Index rose 0.1% month-over-month (Briefing.com consensus 0.1%) following a 0.2% increase in July. The core-PCE Price Index, which excludes food and energy, increased 0.1% (Briefing.com consensus 0.2%) following a 0.2% increase in July.
- On a year-over-year basis, the PCE Price Index was up 2.2%, versus 2.5% in July, while the core-PCE Price index was up 2.7%, versus 2.6% in July.
Key Factors
- The PCE Price Index for Goods was down 0.2% after being flat in July, leaving it down 0.9% year-over-year versus down 0.2% in June. The PCE Price Index for Services was up 0.2%, versus up 0.2% in July, leaving it up 3.7% year-over-year, unchanged from July.
- The personal savings rate as a percentage of disposable personal income dipped to 4.8% from 4.9%.
- Wages and salaries increased 0.5% month-over-month following a 0.3% increase in July.
- Rental income increased 0.7% month-over-month after increasing 0.7% in July.
- Personal interest income fell 0.6% month-over-month after sliding 0.6% in July.
- Personal dividend income was down 0.4% month-over-month after falling 0.3% in July.
- Real disposable income was up 0.1% month-over-month and was up 3.1% year-over-year. Real personal spending was up 0.1% month-over-month and was up 2.9% year-over-year.
Big Picture
- The key takeaway from the report is that it shows tame inflation figures that support the Fed's progress in getting inflation back to its 2% target on a sustainable basis.
| Category | AUG | JUL | JUN | MAY | APR |
| Personal Income | |||||
| Total Income | 0.2% | 0.3% | 0.3% | 0.5% | 0.4% |
| Wage and Salary | 0.5% | 0.3% | 0.2% | 0.6% | 0.2% |
| Disposable Income | 0.2% | 0.2% | 0.2% | 0.4% | 0.3% |
| Savings Rate | 4.8% | 4.9% | 5.2% | 5.2% | 5.3% |
| Personal Consumption | |||||
| Total (Nominal) | 0.2% | 0.5% | 0.3% | 0.5% | 0.3% |
| Total (Real, Chain $) | 0.1% | 0.4% | 0.1% | 0.5% | 0.0% |
| Core PCE Deflator | |||||
| Month/Month | 0.1% | 0.2% | 0.2% | 0.1% | 0.3% |
| Year/Year | 2.7% | 2.6% | 2.6% | 2.7% | 2.9% |