August 2026 personal income and outlays report core PCE
Core inflation held steady at 3.0% annually while personal income and consumer spending rose modestly in August, according to the latest data from the
The core PCE price index rose 0.2% month-over-month and 3.0% year-over-year in August, while headline inflation increased 0.3% monthly and 3.4% annually. The 12-month measure excluding food and energy was 3.0 percent in June, July, and August, indicating a period of stability. Headline inflation also remained unchanged from July's annual rate of 3.4 percent.
Income and spending rose in August
Personal income grew 0.2% and disposable income increased 0.3% in August, driven by wages and government benefits, while PCE rose 0.9% as spending on goods and services both increased. The U.S. Bureau of Economic Analysis (BEA) stated, "Personal income increased $66.6 billion (0.2 percent at a monthly rate) in August." The increase primarily reflected rises in compensation and government social benefits. Private wages and salaries led the compensation gains, while Medicare and social security benefits were the leading contributors within government social benefits.
Personal consumption expenditures increased $190.8 billion. This reflected a $114.1 billion rise in spending on goods and a $76.7 billion increase in spending on services. Personal outlays increased by a nearly identical $190.7 billion.
Saving rate declined from July levels
The personal saving rate fell to 4.1% in August from 4.6% in July. This continues a downward trend from earlier in the year; the rate was 5.3 percent in February and 4.4 percent from April through June. Personal saving was $990.2 billion for the month.
Real spending growth outpaced nominal in key areas
Real PCE, which is adjusted for inflation, increased 0.6% in August. This reflected a $92.8 billion rise. The increase was led by goods, with services spending showing mixed trends. The largest contributors to the increase in real spending are detailed below.
| Category | Increase (in billions) |
|---|---|
| Other nondurable goods | $24.7 |
| Gasoline and other energy goods | $20.9 |
| Motor vehicles and parts | $20.1 |
| Recreational goods and vehicles | $17.0 |
| Food services and accommodations | $20.6 |
| Other services | $18.7 |
| Health care | $15.1 |
| Transportation services | $12.6 |
Spending also rose on food and beverages, clothing, furnishings, and other durable goods. Spending on housing and utilities and financial services increased. Recreation services decreased by $10.3 billion, the only decline among the listed categories.
Current-dollar personal income growth slowed to 0.2 percent in August from 0.3 percent in July. Real disposable personal income was unchanged after a 0.3 percent increase the prior month. The next release of personal income and outlays data is scheduled for October 29, 2026, at 8:30 a.m. EDT.
