US Personal Income and Outlays for August

On Friday, the US Bureau of Economic Analysis (BEA) reported that according to its estimates, personal income (PI) increased $50.5 billion, or 0.2%, at a monthly rate in August. Disposable personal income (DPI), personal income less personal current taxes, increased $34.2 billion, or 0.2%. Personal consumption expenditures (PCE) increased $47.2 billion, or 0.2%.

Real DPI increased 0.1% in August, and real PCE increased 0.1%; goods increased less than 0.1%, while spending on services increased 0.2%. The PCE price index increased 0.1%. Excluding food and energy, the PCE price index increased 0.1%.

Year-over-year, the PCE price index increased 2.2%. Prices for goods decreased 0.9%, while prices for services increased 3.7%. Food prices increased 1.1%, but energy prices decreased 5.0%. Excluding food and energy, the PCE price index increased 2.7% from one year ago.

Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $48.3 billion in August. Personal saving was $1.05 trillion, and the personal saving rate—personal saving as a percentage of disposable personal income—was 4.8%.