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September 26, 2025US PERSONAL INCOME AND OUTLAY, AUGUST 2025 Month over month (August 2025 vs July 2025, seasonally adjusted)
US personal income increased by $95.7 billion (+0.37%). Employee compensation was up $43.1 billion (+0.27%). Personal disposable income was up $86.0 billion (+0.37%) while personal consumption expenditures (PCE) increased by $129.2 billion (+0.62%).
US personal savings continued to decrease by falling $46.8. billion (-4.23%).
US personal income is calculated as the sum of employee compensation ($15.86 trillion), proprietors' income ($2.12 trillion), rental income ($1.12 trillion), receipts on assets ($4.22 trillion) and current transfers received ($4.99 trillion), less contributions to social insurance programs ($2.03 trillion). Personal income ($26.28 trillion) less personal current taxes ($3.25 trillion) equals disposable income ($23.03 trillion).
The outlay of US personal disposable income consists of personal consumption expenditures ($21.11 trillion), interest payments ($0.57 trillion) and current transfers paid ($0.29 trillion) with personal savings ($1.06 trillion) accounting for the remaining amount.
Trends
US personal income declined after the increases in June and July. US consumer spending rebounded for the fourth time in recent months.
Year over year (August 2025 vs August 2024, seasonally adjusted)
Growth in the price index for personal consumption expenditures (all items) was 2.7% year-over-year. Year-over-year growth in the price index for all items excluding food and energy was 2.9%, and outpaced all items PCE inflation for the 30th consecutive month.
With similar growth rates for personal income and personal consumption the US personal savings rate remained steady at 4.6% of disposable personal income in August 2025.
Year-to-date (January-August 2025 vs January-August 2024)
In the first eight months 2025, US personal income increased by 5.1% from the same period in 2024. There were gains from all income sources led by growth in current transfers received (+8.5%). Personal consumption expenditures grew by 5.4%. Personal savings declined 7.9%.
US Bureau of Economic Analysis. Press release, August 2025; Data retrieved Federal Bank of St Louis, Table 2.6. Personal Income and Its Disposition, Monthly NIPA
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