Personal Income, Consumption Growth Slows In August

Personal income climbed just 0.3 percent in August, reports the Bureau of Economic Analysis. Its August 2015 Personal Income and Outlays report found personal income increased $52.5 billion last month, and disposable income climbed $47.1 billion, a 0.4 percent increase. Personal consumption expenditures (PCE) increased $54.9 billion, or 0.4 percent.

In July, personal income increased $69.6 billion, or 0.5 percent, while disposable income increased $63.9 billion, or 0.5 percent, and PCE increased $45.7 billion, or 0.4 percent, based on revised estimates. Real disposable income—disposable income adjusted to remove price changes—increased 0.3 percent in August, compared with an increase of 0.4 percent in July, and real PCE increased 0.4 percent, compared with an increase of 0.3 percent.

In August, wages and salaries increased $35.6 billion, compared with an increase of $43.8 billion in July. Private wages and salaries increased $31.5 billion, compared with a July increase of $40.0 billion. Government wages and salaries increased $4.1 billion, compared with an increase of $3.8 billion in July. Supplements to wages and salaries increased $6.4 billion in August, compared with an increase of $6.7 billion in July.

The bureau’s data shows that personal outlays—PCE, personal interest payments and personal current transfer payments—increased $55.2 billion in August, compared with an increase of $46.0 billion in July.  PCE increased $54.9 billion, compared with an increase of $45.7 billion. Personal saving—DPI less personal outlays—was $615.6 billion in August, compared with $623.6 billion in July. The personal saving rate—personal saving as a percentage of disposable personal income—was 4.6 percent, compared with 4.7 percent in July.

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