2026.03.1312:36:21UTC+00US Personal Income Rises Less Than Expected

US personal income increased by 0.4% month-over-month in January 2026, following a 0.3% gain in December and coming in slightly below the consensus estimate of a 0.5% rise. The advance was driven primarily by an $83.7 billion increase in compensation, including a $71.2 billion rise in wages and salaries. Within that, private wages and salaries rose by $67.5 billion, with services-producing industries contributing $48.3 billion and goods-producing industries $19.2 billion, while government wages and salaries added a further $3.7 billion. Personal dividend income also strengthened, rising by $44.6 billion.

Personal current transfer receipts grew by $18.0 billion, largely reflecting a $49.2 billion increase in Social Security benefits tied to the annual cost-of-living adjustment, partly offset by a $16.7 billion decline in other government social benefits. Disposable personal income (DPI) jumped 0.9%, accelerating from a 0.3% increase in December, and real DPI rose 0.7% after being unchanged in the prior month.