U.S. Personal Income Falls After Federal Jobless Benefit Expires

Americans’ incomes fell in August by the most in three months after the government’s supplemental unemployment benefits expired, threatening to temper consumer spending that increased during the month.

The 2.7% decrease in personal income followed an upwardly revised 0.5% gain a month earlier, according to Commerce Department data released Thursday. The median forecast in a Bloomberg survey of economists called for a 2.5% drop in August. Consumer spending on goods and services increased 1% from the prior month after a downwardly revised 1.5% gain in July.

The decline in income highlights the impact of the expiration of the extra ...