Economics
U.S. Personal Income Falls After Federal Jobless Benefit Expires
- Household spending rises, though monthly gains moderating
- Wages grow with employment but lag behind pace months earlier
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Americans’ incomes fell in August by the most in three months after the government’s supplemental unemployment benefits expired, threatening to temper consumer spending that increased during the month.
The 2.7% decrease in personal income followed an upwardly revised 0.5% gain a month earlier, according to Commerce Department data released Thursday. The median forecast in a Bloomberg survey of economists called for a 2.5% drop in August. Consumer spending on goods and services increased 1% from the prior month after a downwardly revised 1.5% gain in July.