Personal Income Jumps But Spending Weak

Personal income rose 0.4% in August but spending, both nominal and real, rose a weak 0.1%

August Personal Income and Outlays

• Personal income increased $73.5 billion (0.4 percent)
• Disposable personal income (DPI) increased $77.7 billion (0.5 percent)
• Personal consumption expenditures (PCE) increased $20.1 billion (0.1 percent).
• Real DPI increased 0.4 percent in August and Real PCE increased 0.1 percent.
• The PCE price index increased less than 0.1 percent.
• Excluding food and energy, the PCE price index increased 0.1 percent.

The above synopsis from the BLS Personal Income and Outlays report for August.

July Revisions

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The reports are nearly mirrored images. In July real income was weak (0% growth) but spending was moderate (+0.3%) growth.