Personal income increased $57.2 billion, or 0.4%, and disposable personal income (DPI) increased $56.2 billion, or 0.5%, in August, according to the Personal Income and Outlays report by the U.S. Bureau of Economic Analysis. In addition, spending related to personal consumption (personal consumption expenditures) rose $34.5 billion, or 0.3%. This is up from an increase in personal income by $21.2 billion and an increase in DPI of $32.7 billion, as well as a rise in personal consumption expenditures by $18.3 billion in July.
The report also shows an increase in supplements to wages and salaries by $3.8 billion in August, which is unchanged from Julyâ€™s numbers.
Other key findings:
- Rental income dipped. Rental income was $7.6 billion in August, compared with an increase of $7.8 billion in July.
- Personal taxes increased. Personal current taxes increased $1.0 billion in August, in contrast to a decrease of $11.5 billion in July.
- Consumers are saving more. Personal savings was $580.7 billion in August, compared with $562.8 billion in July. In addition, the personal saving rate — personal saving as a percentage of disposable personal income — was 4.6 % in August, compared with 4.5% in July.