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THURSDAY October 1, 2009

CONSUMER SPENDING RISES IN AUGUST

Personal income increased 0.2 percent in August, after
increasing by the same amount in July. Wages and salaries,
the largest component of personal income, increased 0.2
percent in August and in July. Wages in services industries
picked up.
Real disposable personal income (DPI), income adjusted
for inflation and taxes, fell 0.2 percent in August, reflecting a
rise in PCE prices.
Real consumer spending (spending adjusted for price
changes) increased 0.9 percent in August, the largest
increase since June 2005. New car and truck purchases were
the leading contributor, reflecting the effects of the federal
CARS (“cash for clunkers”) program. For more information,
see the CARS FAQ available at www.bea.gov.
PCE prices increased 0.3 percent in August. Excluding food
and energy, prices rose 0.1 percent.

Personal saving as a percent of disposable income was 3.0
percent in August.

Average,
last 12
months

July

Personal
Income

–0.2 %

0.2 %

0.2 %

Real DPI

0.1 %

–0.1 %

–0.2 %

Real
PCE

0.0 %

0.2 %

0.9 %

0.0 %

0.0 %

0.3 %

July

August

4.0 %

3.0 %

PCE
Prices

12-month
average
Personal
Saving
Rate

3.9 %

August

Real Disposable Personal Income and
Real Consumer Spending
2.0

Percent change (monthly)

1.5
1.0

Real Disposable Personal
Income

0.5
0.0
-0.5
-1.0

Real Consumer Spending

-1.5
-2.0

May

June

July

Aug

BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and
economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available.
NOTE: On October 30, 2009, the September estimates of Personal Income and Outlays will be released.
Contact: Ralph Stewart 202–606–2649

Bureau of Economic Analysis, U.S. Department of Commerce