US Personal Income Rises at Softer Pace

US personal income rose by 0.4% month-over-month in January 2026, following a 0.3% increase in December and below expectations of a 0.5% rise. The gain was mainly driven by an $83.7 billion increase in compensation, including a $71.2 billion rise in wages and salaries. Private wages and salaries grew by $67.5 billion, reflecting gains of $48.3 billion in services-producing industries and $19.2 billion in goods-producing industries, while government wages and salaries increased by $3.7 billion. Personal dividend income also climbed by $44.6 billion. Meanwhile, personal current transfer receipts increased by $18.0 billion, mainly due to a $49.2 billion rise in social security benefits linked to the annual cost-of-living adjustment, partly offset by a $16.7 billion decline in other government social benefits. Disposable personal income jumped by 0.9%, accelerating from a 0.3% rise in December, while real DPI increased by 0.7% after being flat previously.

US personal income rose by 0.3% month-over-month to $26.512 trillion in December 2025, following a downwardly revised 0.4% increase in November, matching market expectations. This marked the seventh consecutive monthly rise in personal income, primarily reflecting a $38.4 billion increase in personal current transfer receipts, including a $23.0 billion from a wildfire settlement and $15.4 billion in government social benefits. At the same time, compensation rose by $31.0 billion, with private wages and salaries increasing by $19.0 billion and government wages and salaries increasing by $5.3 billion. Meanwhile, disposable personal income went up by 0.3%, the same pace as in November. Real disposable personal income was flat in December, after a 0.1% rise in the prior month.

US personal income rose by 0.3% month-over-month to $26.403 trillion in November 2025, following a 0.1% increase in October and slightly below analysts' estimates of a 0.4% advance. This marked the sixth consecutive monthly increase in personal income, primarily reflecting a rise in compensation of employees (+0.4%), as both wages (+0.4%) and supplements to wages (+0.3%) edged higher. Additionally, personal dividend income rose by 0.6%, rebounding from a similar decrease in the prior month. Meanwhile, disposable personal income increased at a faster 0.3%, compared to 0.1% in October. Real disposable personal income edged up by 0.1%, after a 0.1% fall in the prior month.