From the BEA:
Personal income increased $38.4 billion, or 0.3 percent, and disposable personal income (DPI) increased $38.8 billion, or 0.4 percent, in August, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $10.5 billion, or 0.1 percent. In July, personal income increased $57.2 billion, or 0.5 percent, DPI increased $62.0 billion, or 0.6 percent, and PCE increased $75.9 billion, or 0.8 percent, based on revised estimates.
Personal saving — DPI less personal outlays — was a negative $45.0 billion in August, compared with a negative $70.1 billion in July. Personal saving as a percentage of disposable personal income was a negative 0.5 percent in August, compared with a negative 0.7 percent in July. Negative personal saving reflects personal outlays that exceed disposable personal income. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods.
Treasury prices turned slightly lower early Friday, pushing yields up a bit, after the Commerce Department said core inflation rose to an 11-year high last month. The core personal consumption expenditure price index — the key inflation gauge followed by the Federal Reserve — has gained 2.5% in the past 12 months, the most since January 1995. The news brought back to life concerns that the Federal Reserve may have to keep raising rates. Consumer prices rose 0.2% in August, and core consumer prices, which exclude food and energy, also rose 0.2%. Personal incomes grew 0.3% as expected in August after rising 0.5% in July. Consumer spending increased 0.1% in August after rising 0.8% in July; economists expected a 0.2% rise.