Updated: 30-Sep-26 09:41 ET
| August Personal Income and Spending |
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| Updated: 30-Sep-26 09:41 ET |
Highlights
- The August Personal Income and Spending report showed income up 0.2% month-over-month (Briefing.com consensus: 0.4%), spending up 0.9% (Briefing.com consensus: 0.7%), the PCE Price Index up 0.3% (Briefing.com consensus: 0.4%), and the core PCE Price Index up 0.2% (Briefing.com consensus: 0.3%).
- On a year-over-year basis, the PCE Price Index was up 3.4%, unchanged from July, which was revised down from 3.7%; and the core PCE Price Index was up 3.0%, also unchanged from July, which was revised down from 3.3%.
Key Factors
- Real personal spending increased 0.6%, while real disposable income was unchanged.
- The personal saving rate was 4.1%, down from 4.6%, even as wages and salaries increased 0.3%.
- The PCE Price Index for Goods was up 0.3% in August after falling 0.1% in July.
- The PCE Price Index for Services was up 0.3% after being up 0.1% in July.
Big Picture
- The key takeaway, though, is that PCE inflation, no matter how you slice it, is still far above the Fed's 2.0% inflation target, so the idea that the Fed may raise rates again before the end of the year is bound to remain a lively one. Another important takeaway is that spending outpaced income growth, which contributed to the decline in the personal savings rate.
| Category | AUG | JUL | JUN | MAY | APR |
| Personal Income | |||||
| Total Income | 0.2% | 0.3% | 0.2% | 0.7% | 0.1% |
| Wage and Salary | 0.3% | 0.2% | 0.2% | 0.4% | 0.3% |
| Disposable Income | 0.3% | 0.4% | 0.3% | 0.8% | 0.1% |
| Savings Rate | 4.1% | 4.6% | 4.4% | 4.4% | 4.4% |
| Personal Consumption | |||||
| Total (Nominal) | 0.9% | 0.1% | 0.3% | 0.8% | 0.8% |
| Total (Real, Chain $) | 0.6% | 0.1% | 0.4% | 0.3% | 0.3% |
| Core PCE Deflator | |||||
| Month/Month | 0.2% | 0.1% | 0.1% | 0.3% | 0.3% |
| Year/Year | 3.0% | 3.0% | 3.0% | 3.2% | 3.1% |