US Personal Income Rises Less than Expected

Personal income in the US rose by 0.2% month-over-month to $27,627 billion in August 2026, following a downwardly revised 0.3% increase in July and missing the expected 0.4% gain. The $66.6 billion increase in personal income in August mainly reflected higher compensation of employees (0.3% vs 0.3% in July), led by private wages and salaries (0.3% vs 0.2%), and increased government social benefits (0.4% vs 0.4%), driven by Medicare and Social Security benefits. Meanwhile, disposable personal income went up by 0.3%, slowing from a 0.4% rise in July, while real disposable personal income was flat, compared with a 0.3% increase in the prior month.

Personal income in the US rose by 0.4% from the previous month to $27,115 billion in July of 2026, picking up from the 0.2% increase in the previous month and firmly above market expectations of a 0.2% increase. It was the ninth consecutive increase in personal income, underscoring the resilience of the US economy to energy shocks and high borrowing costs. Meanwhile, disposable personal income rose by 0.5%. The increases were supported by higher compensation from private wages, government social benefits from increases Medicaid and Medicare, and personal income receipts on assets from personal dividends.

US personal income rose 0.2% month-over-month in June 2026, falling short of market expectations for a 0.3% increase and slowing from a 0.7% gain in May. The increase was driven by higher employee compensation, income receipts on assets, and government social benefits, partly offset by a decline in farm proprietors' income. Employee compensation rose by $32.3 billion, led by a $19.6 billion increase in private-sector wages and salaries. Income from assets increased on higher dividend and interest earnings, while government social benefits were supported mainly by higher Medicare and social security benefits. The decline in farm proprietors' income reflected the timing of payments under the American Relief Act of 2025. Meanwhile, disposable personal income also rose 0.2%, slowing from 0.7% in May, while real disposable personal income increased 0.3%, accelerating from a 0.2% gain in the previous month.