Personal Income and Outlays, August 2023

Historical release narrative reproduced from the official public-domain U.S. Bureau of Economic Analysis source. Statistical tables, charts, standard technical appendices and administrative material are omitted; formatting is adapted for reading. Figures retain the release's original vintage and may have been revised. Consult the linked source for the complete release and current data.

Personal income increased $87.6 billion (0.4 percent at a monthly rate) in August, according to estimates released today by the Bureau of Economic Analysis (table 2 and table 3). Disposable personal income (DPI), personal income less personal current taxes, increased $46.6 billion (0.2 percent) and personal consumption expenditures (PCE) increased $83.6 billion (0.4 percent).

The PCE price index increased 0.4 percent. Excluding food and energy, the PCE price index increased 0.1 percent (table 5). Real DPI decreased 0.2 percent in August and real PCE increased 0.1 percent; goods decreased 0.2 percent and services increased 0.2 percent (tables 3 and 4).

The increase in current-dollar personal income in August primarily reflected increases in compensation, personal income receipts on assets, rental income of persons, and proprietors’ income that were partly offset by a decrease in personal current transfer receipts (table 2).

The $83.6 billion increase in current-dollar PCE in August reflected a $47.0 billion increase in spending for services and a $36.7 billion increase in spending for goods (table 2). Within services, the largest contributors to the increase were housing and utilities (led by housing), transportation services, and health care (both hospitals and outpatient services). Within goods, the largest contributor to the increase was spending for gasoline and other energy goods (led by motor vehicle fuels, lubricants, and fluids). Detailed information on monthly PCE spending can be found on Table 2.4.5U.

Personal outlays, the sum of PCE, personal interest payments, and personal current transfer payments, increased $86.0 billion in August (table 2). Personal saving was $794.1 billion in August and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.9 percent (table 1).

Prices

From the preceding month, the PCE price index for August increased 0.4 percent (table 5). Prices for goods increased 0.8 percent and prices for services increased 0.2 percent. Food prices increased 0.2 percent and energy prices increased 6.1 percent. Excluding food and energy, the PCE price index increased 0.1 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.

From the same month one year ago, the PCE price index for August increased 3.5 percent (table 7). Prices for goods increased 0.7 percent and prices for services increased 4.9 percent. Food prices increased 3.1 percent and energy prices decreased 3.6 percent. Excluding food and energy, the PCE price index increased 3.9 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 4). Within services, the leading contributors to the increase were transportation services (led by air transportation) and health care (led by hospitals and nursing homes). Within goods, the largest contributor to the decrease was motor vehicles and parts (led by new motor vehicles). Detailed information on monthly real PCE spending can be found on Table 2.4.6U.

Comprehensive Update of the National Economic Accounts

Today’s release presents results from the comprehensive update of the National Economic Accounts. The revisions for income estimates begin with January 1979 and revisions for consumer spending begin with January 2013. Monthly estimates for January through March of 2023 include 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 of 2023 have been updated to reflect revised monthly data from the BLS Current Employment Statistics program.

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 8 of this release. Updated quarterly and annual estimates of personal income and outlays were presented as part of the third release of GDP for the second quarter of 2023 on September 28, 2023.