Washington, Aug. 26: U.S. personal income increased by $115.1 billion, or 0.4% at a monthly rate, in July 2026, according to estimates released Wednesday by the U.S. Bureau of Economic Analysis (BEA).
“Personal income increased $115.1 billion (0.4 percent at a monthly rate) in July. Disposable personal income (DPI) — personal income less personal current taxes — increased $125.9 billion (0.5 percent), and personal consumption expenditures (PCE) increased $36.3 billion (0.2 percent),” the BEA stated.
The BEA noted that the increase in current-dollar personal income in July “primarily reflected increases in compensation, government social benefits, and personal income receipts on assets.”
Personal outlays, which include personal consumption expenditures, personal interest payments and personal current transfer payments, increased by $36.6 billion during the month.
Personal savings reached $712 billion in July, while the personal saving rate stood at 3.0%, the BEA said.
The $36.3 billion increase in current-dollar consumer spending occurred as outlays shifted between categories. According to the BEA, the monthly net increase “reflected an increase of $86.2 billion in spending on services that was partly offset by a decrease of $49.9 billion in spending on goods.”
On the services side, the largest gains occurred in financial services and insurance, which increased by $24.3 billion, and health care, which rose by $23.2 billion. Spending on housing and utilities increased by $16.4 billion.
Other service areas also showed growth, including final expenditures of nonprofit institutions at $6.4 billion, other services at $6.1 billion, transportation services at $4.8 billion, food services and accommodations at $4.6 billion, and recreation services at $0.3 billion.
The decline in goods spending was led by drops in gasoline and other energy goods, which decreased by $14.0 billion, and recreational goods and vehicles, which fell by $13.6 billion.
Spending on motor vehicles and parts dropped by $9.4 billion, other nondurable goods fell by $6.8 billion, furnishings and durable household equipment declined by $3.8 billion, food and beverages decreased by $2.4 billion, and clothing and footwear fell by $2.2 billion. Other durable goods recorded an increase of $2.3 billion.
Real personal consumption expenditures, adjusted for inflation, increased by $1.3 billion, representing a monthly rate increase of less than 0.1% in July.
Prices showed moderate movement during the same period. From the preceding month, the personal consumption expenditures price index for July increased 0.2%. The BEA noted that “excluding food and energy, the PCE price index also increased 0.2 percent.”
On an annual basis, consumer prices continued to track higher. From the same month a year earlier, the personal consumption expenditures price index increased 3.7%. Excluding food and energy costs, the index rose 3.3% from a year earlier. (ANI)
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