US inflation-adjusted consumer spending rose less than 0.1% in September. After-tax income rose 0.2% in dollars but fell 0.3% after inflation, while core PCE inflation was 0.3% monthly and 3.1% annually.
US consumer spending rose 0.5% in current dollars in September, but bought barely more goods and services after accounting for rising prices. After-tax income also lost purchasing power, the US Bureau of Economic Analysis said in its October 29 release. That followed August’s stronger spending growth and unchanged inflation-adjusted income.
Personal consumption expenditures, or PCE, measure consumer spending. Current-dollar figures show money spent; “real” figures adjust for price changes to show how much consumption increased. September’s gap between the two measures shows why higher spending did not translate into much more consumption.
| Measure | August | September |
|---|---|---|
| Consumer spending, current dollars | 0.9% | 0.5% |
| Consumer spending, inflation-adjusted | 0.5% | Less than 0.1% |
| After-tax income, current dollars | 0.3% | 0.2% |
| After-tax income, inflation-adjusted |
Gasoline special consumption tax rates of 7%–10% fall to zero through 31 March 2027. The average electricity tariff falls 2% to 2,159.9 dong per kWh, excluding VAT, under measures effective 1 November 2026.
| Unchanged |
| -0.3% |
| PCE price index | 0.3% | 0.5% |
| PCE prices excluding food and energy | 0.3% | 0.3% |
The PCE price index, which tracks prices for consumer spending, was 3.6% above September a year earlier. Core PCE inflation, which excludes food and energy, was 3.1% over the same period.
| Category | Increase |
|---|---|
| Goods | $35.1 billion |
| Services | $78.1 billion |
| Total | $113.1 billion |
Disposable personal income means income after personal current taxes, before paying living expenses. Its inflation-adjusted measure describes what that money can buy. These are national totals, rather than a measure of each household’s experience.
The bureau attributed personal-income growth mainly to compensation and government social benefits. Private wages and salaries led the compensation increase, while Medicare led the rise in government social benefits.
Personal saving was $911.1 billion. The saving rate was 3.8%, meaning saving represented that share of disposable personal income.
The bureau updated July and August personal-income estimates using revised US Bureau of Labor Statistics employment data. It also revised personal interest income, led by monetary interest, using newly available US Bureau of the Fiscal Service data.
September’s figures are estimates subject to replacement in the next release. The bureau has scheduled October’s income and spending estimates for 25 November 2026. That release will supersede the current estimates and update the linked tables; the original figures will remain available in the bureau’s archive.
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