Personal Income and Consumer Spending Rise in July 2026-More Spending on Services and Less on Goods

Personal income and consumer spending both increased, which are positive signs following the decline in the prior month. However, the increases were relatively modest. Disposable income also rose slightly, while the personal savings rate remained relatively low. This suggests that although people are earning and spending a little more, they may not be setting aside much of that additional income. n

Some of the services where they are spending their money may be expenses out of the consumers control while goods has some flexibility if you can't afford it right now. Maybe, maybe not. 

Personal Income and Consumer Spending Continue to Rise in July 2026

1. Personal income increased $115.1 billion, or 0.4%, in July, while disposable personal income rose $125.9 billion, or 0.5%.

   

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2. Consumer spending increased $36.3 billion, or 0.2%, indicating that households continued to contribute to economic activity despite relatively modest overall growth.
3. The increase in spending was concentrated in services, which rose $86.2 billion, while spending on goods declined $49.9 billion. Real consumer spending increased less than 0.1%.
4. Inflation remained relatively moderate in July, with the PCE price index increasing 0.2%. Core PCE inflation, excluding food and energy, also increased 0.2%.
5. Personal saving totaled $712 billion, but the personal saving rate was only 3.0% of disposable income. Overall, the report suggests that income and consumer demand remain positive, although the limited growth in real consumption and low saving rate could indicate some pressure on household finances.

U.S. Bureau of Economic Analysis. (2026, August 26). Personal income and outlays, July 2026. https://www.bea.gov/news/2026/personal-income-and-outlays-july-2026