Indicators · Households
Spending and income
Chart only
Over the six months to Aug 2026 real consumer spending rose 1.9% and real income excluding government transfers rose 0.4%.
The change in real spending over six months is higher than 77% of the readings since 1990.
What it measures
Real consumer spending and real personal income excluding government transfers, change over six months.
Why it matters
When spending grows faster than earned income for a long time, the difference is paid for from savings, wealth or government transfers.
Where it fits
Household income and spending. The argument predicts: Wages fall as a share of household income while employment stays level.
Other possible causes. In a recession, wage income falls along with employment.