US personal income, spending rise 0.4% in August, along with estimates

By Ovunc Kutlu

ISTANBUL (AA) - Americans' personal income and spending each rose 0.4% in August, both in line with market expectations, according to official figures released Friday.

Personal income climbed $87.6 billion from the previous month, according to data from the Commerce Department's Bureau of Economic Analysis. The figure for July was unrevised at 0.2%.

Disposable personal income, which is personal income minus personal current taxes, rose $46.6 billion, or 0.2%, said the bureau.

"The increase in current-dollar personal income in August primarily reflected increases in compensation, personal income receipts on assets, rental income of persons, and proprietors' income that were partly offset by a decrease in personal current transfer receipts," it said in a statement.

Personal consumption expenditures, meanwhile, increased by $83.6 billion in August compared to the previous month. The July figure was revised upward to a gain of 0.9% from an increase of 0.8%.

Personal outlays, which include consumption expenditures, personal interest payments and current transfer payments, increased $86 billion in August, according to the figures.

While personal saving was $794.1 billion last month, the personal saving rate -- personal saving as a percentage of disposable personal income -- was 3.9%, figures showed.