Published:
Personal Income and Outlays, August 2026
BEA reports August personal income rose 0.2%, disposable personal income rose 0.3%, and personal consumption expenditures (PCE) rose 0.9% in current terms and 0.6% in real terms; the PCE price index increased 0.3% on the month and 3.4% year on year (3.0% excluding food and energy).
The US Bureau of Economic Analysis reported that personal income increased by $66.6 billion in August, a 0.2% monthly rise. Disposable personal income (DPI) increased by $68.6 billion (0.3%). BEA notes that the income increase was driven mainly by higher compensation and government social benefits.
Personal consumption expenditures rose more strongly: total PCE increased by $190.8 billion (0.9% at a monthly rate). Spending on goods increased by $114.1 billion, while services spending rose by $76.7 billion. In real terms, real PCE increased by $92.8 billion, equivalent to 0.6% on the month. BEA also reported that personal saving was $990.2 billion, with the personal saving rate at 4.1% of DPI.
On prices, the PCE price index increased 0.3% in August. Excluding food and energy, the PCE price index rose 0.2% on the month. On a year-over-year basis, the overall PCE price index increased 3.4%, while the “core” measure excluding food and energy rose 3.0%.
For FX traders, the key watch-through is how this consumption-and-inflation mix influences expectations for the inflation trajectory and the likely direction of rate policy. The next scheduled release is BEA’s Personal Income and Outlays for September on October 29, 2026.
Why this matters for FX
This release maps directly into the US inflation and growth backdrop for monetary policy expectations: stronger real PCE supports demand and growth expectations, while the PCE price index (headline and core) informs the inflation pathway the Fed reacts to. Changes in household income, spending, and saving also affect how durable consumption demand is, feeding into rate expectations and the US real economy outlook, which typically influences USD pricing through interest-rate differentials and risk sentiment.