U.S. personal income increased 0.5% in August — a rebound from a 0.6% drop in July — while personal consumption expenditures were flat, and core PCE prices were up 0.2% for a 2.6% increase over the year, their highest gain since January 1995.
Private wages advanced $24.5 billion after a $16.3 billion rise in July, and rents, income receipts, and transfers also gained. Extended unemployment benefits added $17.6 billion to August transfers. Proprietors’ income, in decline for some time, dropped $8.7 billion as farm income fell further.
Real PCE was down 0.5% in July and flat in August, suggesting lower consumption in the third-quarter gross domestic product accounts.
— Market News International
