US Consumer Spending Beats Expectations

US personal spending increased 0.5 percent in August, after being flat in July and personal income rose 0.3 percent. The saving rate decreased by 20 bps to 5.4 percent.
Bureau of Economic Analysis | Joana Taborda | joana.taborda@tradingeconomics.com 9/29/2014 1:47:04 PM
Personal income increased $47.3 billion, or 0.3 percent, and disposable personal income (DPI) increased $35.2 billion, or 0.3 percent, in August. Personal consumption expenditures increased $57.5 billion, or 0.5 percent.  In July, personal income increased $35.9 billion, or 0.2 percent, DPI increased $24.6 billion, or 0.2 percent, and PCE increased $0.5 billion, or less than 0.1 percent, based on revised estimates.

Private wages and salaries increased $30.4 billion in August, compared with an increase of $17.4 billion in July. Goods-producing industries' payrolls increased $6.0 billion, compared with an increase of $1.2 billion; manufacturing payrolls increased $3.6 billion, in contrast to a decrease of $0.8 billion.  Services-producing industries' payrolls increased $24.6 billion, compared with an increase of $16.2 billion.  Government wages and salaries increased $1.4 billion, compared with an increase of $1.1 billion.

Personal saving was $705.3 billion in August, compared with $730.5 billion in July. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 5.4 percent in August, compared with 5.6 percent in July. 


US Consumer Spending Beats Expectations