Personal Income Rises Modestly: Spending Up and Income Rises More Slowly

October 1st, 2026

 ESCANABA-MI.-Personal income is up, disposable income has increased, and consumer sentiment has improved somewhat. Personal savings have also increased, which is generally positive news for the economy.

However, one important question remains: Who is benefiting from these increases? More detailed information showing changes in disposable income and savings across different income groups would provide a clearer picture of how households are actually doing.

This becomes particularly important when considering concerns about income concentration, consumer confidence, and households that report struggling with everyday living expenses. Aggregate economic numbers can show improvement while masking significant differences among income groups.

Another useful metric, therefore, would be a bracketed measure showing income and savings growth by household or income category. That would help us better understand who is able to save, who is falling behind, and whether economic gains are being broadly distributed. Let’s keep an eye out for that additional data in the market if we see it. 

Income is rising slower than spending. 

Its interesting how this information is calculated. See at the bottom Table 2.6. Personal Income and Its Disposition, Monthly

Personal Income Rises Modestly While Consumer Spending Accelerates in August 2026

• Personal income increased 0.2% in August, or $66.6 billion, while disposable personal income rose 0.3%, or $68.6 billion.

• Consumer spending increased substantially, with personal consumption expenditures (PCE) rising 0.9%. Spending on goods increased $114.1 billion, while services increased $76.7 billion.

• Real consumer spending, after adjusting for inflation, increased 0.6%, suggesting that consumers purchased more goods and services rather than the entire increase being attributable to higher prices.

• Inflation remained elevated: the PCE price index increased 0.3% in August and was up 3.4% from a year earlier. Core PCE, excluding food and energy, rose 3.0% year over year.

• Personal saving totaled $990.2 billion, producing a 4.1% personal saving rate. Overall, the data show continued consumer spending growth, although income growth was considerably slower than the increase in spending.

U.S. Bureau of Economic Analysis. (2026, September 30). Personal income and outlays, August 2026. U.S. Department of Commerce. BEA report