Personal Income, Disposable Income, and Personal Consumption Expenditures All Increase in August

The US Bureau of Economic Analysis (BEA) reported on Friday that according to its estimates, personal income (PI) increased $87.6 billion, or 0.4%, in August. Disposable personal income (DPI), personal income less personal current taxes, increased $46.6 billion, or 0.2%. Personal consumption expenditures (PCE) increased $83.6 billion, or 0.4%.

The PCE price index increased 0.4% in August. Excluding food and energy, the PCE price index increased 0.1%. Real DPI decreased 0.2% and real PCE increased 0.1%; goods decreased 0.2% but services increased 0.2%.

Year-over-year, the PCE price index for August increased 3.5%. Prices for goods increased 0.7%, while prices for services increased 4.9%. Food prices increased 3.1%, while energy prices declined 3.6%. Excluding food and energy, the PCE price index increased 3.9% from one year ago.

Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $86.0 billion in August. Personal saving was $794.1 billion, and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.9%.