The Bureau of Economic Analysis (BEA) has released its reading for personal income and spending for the month of August. Personal income increased by $39.3 billion, or by 0.2%, and spending was flat at 0.0% in August. Bloomberg had the consensus estimates at 0.2% for both personal income and consumer spending.
Before getting too upset about spending being flat and under expectations, we should consider that August was a month in which some holes already were appearing on the retail spending front. That was even the case for casual dining.
The BEA also reported that disposable personal income increased by $31.9 billion, or 0.2%, and personal consumption expenditures increased by $6.2 billion, less than a 0.1% gain.
Real disposable personal income increased 0.1% in August and real personal consumption expenditures decreased 0.1%. The personal consumption expenditures price index increased by just 0.1%, while the core personal consumption expenditures price index (excluding food and energy) increased by 0.2%.
Other data for August released from the BEA were as follows:
- The increase in personal income in August primarily reflected increases in compensation of employees, personal income receipts on assets and government social benefits.
- The decrease in real PCE in August primarily reflected a decrease in spending for durable goods that was partially offset by an increase in spending for services.
- Personal saving was $807.6 billion in August and the personal saving rate, personal saving as a percentage of disposable personal income, was 5.7%.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.