U.S. Personal Income Rose 0.2% in August as Spending Increased 0.9%

U.S. personal income increased $66.6 billion (0.2 percent at a monthly rate) in August 2026, according to estimates released September 30, 2026 by the U.S. Bureau of Economic Analysis. Disposable personal income, defined as personal income less personal current taxes, increased $68.6 billion (0.3 percent), and personal consumption expenditures increased $190.8 billion (0.9 percent).

Personal outlays, the sum of personal consumption expenditures, personal interest payments, and personal current transfer payments, increased $190.7 billion in August. Personal saving was $990.2 billion, and the personal saving rate, measured as personal saving as a percentage of disposable personal income, was 4.1 percent.

The Bureau said the increase in current-dollar personal income primarily reflected increases in compensation and government social benefits. Within compensation, the increase was led by private wages and salaries, based on U.S. Bureau of Labor Statistics Current Employment Statistics data. Within government social benefits, the leading contributors to the increase were Medicare and social security benefits, based on data from the Monthly Treasury Statement and the Budget of the U.S. Government.

Goods and Services Spending

The $190.8 billion increase in current-dollar consumer spending reflected increases of $114.1 billion in spending on goods and $76.7 billion in spending on services. Real personal consumption expenditures increased $92.8 billion (0.6 percent at a monthly rate).

The full release breaks the monthly spending change into categories, denominated in billions of U.S. dollars. The largest goods contributors were other nondurable goods at $24.7 billion, gasoline and other energy goods at $20.9 billion, motor vehicles and parts at $20.1 billion, and recreational goods and vehicles at $17.0 billion. Spending on food and beverages increased $11.6 billion, spending on clothing and footwear increased $9.0 billion, spending on furnishings and durable household equipment increased $6.5 billion, and spending on other durable goods increased $4.3 billion.

The largest services contributors were food services and accommodations at $20.6 billion, other services at $18.7 billion, health care at $15.1 billion, and transportation services at $12.6 billion. Spending on housing and utilities increased $10.3 billion, spending on financial services and insurance increased $8.5 billion, and final expenditures of nonprofit institutions increased $1.1 billion. Recreation services decreased $10.3 billion, the only decline among the categories listed in the spending table.

PCE Price Indexes

From the preceding month, the PCE price index for August increased 0.3 percent. Excluding food and energy, the index increased 0.2 percent. From the same month one year ago, the PCE price index increased 3.4 percent. Excluding food and energy, the index increased 3.0 percent from one year ago.

The release’s year-ago price table shows the 12-month headline measure at either 2.7 percent or 2.8 percent in each month from August 2025 through February 2026, followed by 3.45 percent in March 2026, 3.6 percent in April 2026, 3.85 percent in May 2026, 3.55 percent in June 2026, and 3.4 percent in both July and August 2026. The 12-month measure excluding food and energy was 2.95 percent in August 2025, 2.8 percent in September 2025, 2.7 percent in October and November 2025, 2.95 percent in December 2025 and January 2026, 3.05 percent in February 2026, 3.15 percent in March and April 2026, 3.25 percent in May 2026, and 3.0 percent in June, July, and August 2026, according to the published chart values.

A comparison table in the release shows current-dollar personal income growth of 0.2 percent in August after 0.3 percent in July 2026, current-dollar disposable personal income growth of 0.3 percent after 0.4 percent, and real disposable personal income unchanged (0.0 percent) after a 0.3 percent July increase. Current-dollar PCE growth was 0.9 percent after 0.1 percent, and real PCE increased 0.6 percent after 0.1 percent. The PCE price index increased 0.3 percent after a 0.1 percent July increase, and the index excluding food and energy increased 0.2 percent after 0.1 percent.

A separate monthly table in the release shows the personal saving rate at 4.1 percent in August, compared with 4.6 percent in July 2026 and 5.3 percent in February 2026. The rate was 5.1 percent in March 2026 and 4.4 percent in April, May, and June 2026.

The release presents monthly results from the annual update of the National Economic Accounts, with revisions for estimates of personal income and outlays beginning with January 2021. Monthly estimates of compensation for January through March 2026 include revisions resulting from the incorporation of first-quarter wage and salary data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages program. Estimates of wages and salaries for April through July 2026 were updated to reflect revised monthly data from the Current Employment Statistics program, and the revision to Medicaid benefits reflects updated information from the Centers for Medicare & Medicaid Services, according to the release’s technical notes.

The release, numbered BEA 26-43, was embargoed until 8:30 a.m. Eastern time on September 30, 2026. The Bureau’s personal income data page lists the August 2026 report as the current release, dated September 30, 2026. The next release, Personal Income and Outlays for September 2026, is scheduled for October 29, 2026, at 8:30 a.m. Eastern time.