US Personal Income Rose 0.2% in August as Spending Surged
Consumer spending jumped 0.9% in August while income grew modestly, pushing the personal saving rate to 4.1%, BEA data show.
Americans' personal income climbed $66.6 billion, or 0.2 percent, in August, according to data released by the U.S. Bureau of Economic Analysis, as household spending outpaced earnings growth by a wide margin.
Personal consumption expenditures rose $190.8 billion, a 0.9 percent monthly gain, signaling robust consumer activity. Total personal outlays — which include PCE alongside interest payments and current transfer payments — increased by nearly the same amount, $190.7 billion.
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Disposable personal income, which strips out current taxes, increased $68.6 billion, or 0.3 percent, slightly ahead of the broader income figure. The gap between spending growth and income growth illustrates the degree to which consumers drew on available funds rather than fresh earnings to finance August purchases.
Personal saving stood at $990.2 billion for the month, with the personal saving rate — saving measured as a share of disposable income — registering 4.1 percent. A saving rate at that level suggests households retained a relatively modest buffer even as outlays accelerated sharply.
Continue reading at U.S. Bureau of Economic Analysis.
