US Personal Income Unexpectedly Falls

US personal income fell by 0.1% month-over-month in February 2026, following a 0.4% increase in January and defying expectations of a 0.3% rise.

This marked the first decline since May 2025, largely reflecting a $38.4 billion drop in personal dividend income and a $21.6 decline in current transfer receipts.

This was partially offset by higher compensation and farm proprietors’ income.

Disposable personal income fell by 0.1%, after increasing by 0.9% in January, while real DPI declined by 0.5% after a downwardly revised 0.6% rise in the prior month.