(RTTNews) – Reflecting a decrease in unemployment insurance benefits, the Commerce Department released a report on Thursday showing a steep drop in U.S. personal income in the month of August.
The report said personal income tumbled by 2.7 percent in August after rising by an upwardly revised 0.5 percent in July.
Economists had expected personal income to slump by 2.5 percent compared to the 0.4 percent increase originally reported for the previous month.
Disposable personal income, or personal income less personal current taxes, also plunged by 3.2 percent in August after inching up by 0.3 percent in July.
The Commerce Department said the sharp pullback in personal income partly reflected the expiration of the Federal Pandemic Unemployment Compensation program, which provided a temporary weekly supplemental payment of $600 for those receiving unemployment benefits.
The decrease in unemployment insurance benefits was partly offset by an increase in compensation, with temporary and