Personal income increased $71.6 billion (0.3 percent) in August, according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $67.6 billion (0.4 percent) and personal consumption expenditures (PCE) increased $67.5 billion (0.4 percent).

The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.6 percent (table 9). Real DPI increased 0.1 percent in August and Real PCE increased 0.1 percent; goods decreased 0.2 percent and services increased 0.2 percent (tables 5 and 7).

The increase in current-dollar personal income in August primarily reflected increases in compensation, proprietors' income, and government social benefits that were partly offset by a decrease in personal interest income (table 3). The increase in compensation was led by private wages and salaries. Within private wages and salaries, an increase in services-producing industries was partly offset by a decrease in goods-producing industries. The increase in proprietors' income reflected an increase in nonfarm income. The increase in government social benefits was mainly in Medicare.

The $67.5 billion increase in current-dollar PCE in August reflected an increase of $96.9 billion in spending for services that was partly offset by a decrease of $29.4 billion in spending for goods (table 3). Within services, the largest contributors to the increase were spending for housing and utilities, transportation, and health care. Within goods, spending for gasoline and other energy goods was the leading contributor to the decrease. Detailed information on monthly PCE spending can be found on Table 2.3.5U.

Personal outlays increased $67.8 billion in August (table 3). Personal saving was $652.8 billion in August and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.5 percent (table 1).

Prices

From the preceding month, the PCE price index for August increased 0.3 percent (table 9). Prices for goods decreased 0.3 percent and prices for services increased 0.6 percent. Food prices increased 0.8 percent and energy prices decreased 5.5 percent. Excluding food and energy, the PCE price index increased 0.6 percent. Detailed monthly PCE price indexes can be found on Table 2.3.4U.

From the same month one year ago, the PCE price index for August increased 6.2 percent (table 11). Prices for goods increased 8.6 percent and prices for services increased 5.0 percent. Food prices increased 12.4 percent and energy prices increased 24.7 percent. Excluding food and energy, the PCE price index increased 4.9 percent from one year ago.

Real PCE

The 0.1 percent increase in real PCE in August reflected an increase of 0.2 percent in spending on services and a decrease of 0.2 percent in spending on goods (table 7). Within services, health care and transportation services were the leading contributors to the increase. Within goods, "other" nondurable goods (including personal care products, and newspapers, printed materials, and other nondurable recreation items), and recreational goods and vehicles were the leading contributors to the decrease. Detailed information on monthly real PCE spending can be found on Table 2.3.6U.

Annual Update of the National Economic Accounts

Today’s release presents results from the Annual Update of the National Economic Accounts and includes revised estimates for January 2017 through March 2022. The reference year remains 2012.

Revisions to annual estimates of personal income and outlays are shown in table 12. Revised and previously published changes in monthly personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI, and real PCE are shown in table 13. Revised and previously published changes in annual and quarterly estimates are shown in table 14.

Monthly estimates for January through March of 2022 have been updated as part of the annual update, including revisions resulting from the incorporation of first-quarter wage and salary data from the Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages program.

Estimates for April through July have been updated to reflect revised monthly data from the BLS Current Employment Statistics program. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2012) dollar DPI and PCE, are provided below for June and July.

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Next release: October 28, 2022, at 8:30 a.m. EDT
Personal Income and Outlays, September 2022