Real Personal Income Fell 0.1 Percent August, Real Spending Jumped 0.6 Percent

Real incomes are down but spending surged.

The BEA Personal Income and Outlays report for August 2026 shows that personal income increased $66.6 billion (0.2 percent at a monthly rate) in August.

Income and Outlays Details

• Disposable personal income (DPI)—personal income less personal current taxes—increased $68.6 billion (0.3 percent)
• Personal consumption expenditures (PCE) increased $190.8 billion (0.9 percent).

PCE Price Index

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

Adjusted for inflation, real personal income declined 0.1 percent in August. Real spending rose 0.6 percent.

Real Personal Income and Real Spending Percent Change from Year Ago

Consumers continue to spend faster than incomes rise. A buoyant stock stock market fuels spending by the asset holders. The rest are suffering from inflation.

Related Posts

September 30, 2026: BEA Revises Second-Quarter GDP 0.7 PP Higher to 2.2 Percent

The third estimate for GDP topped economist’s consensus estimates.

GDP Not Boosting Sentiment

On September 29, 2026 I noted US Consumer Confidence Plunges to the Lowest Level Since 2014

Views of the present situation and future expectations both declined dramatically.

On September 25, 2026, I noted Consumer Sentiment Drops in September to Just Above Record Lows

Republican attitudes decline the most, but from higher levels.

Partisan Sentiment Changes

• After particularly large declines in sentiment this month, Republican sentiment is now 20% lower than January 2026.
• Democrats are down 13% over the same period.

Consumers remain concerned over inflation no matter what economists and the GDP say about the economy.