Research >> Economics
Personal Income increased 0.3%, Spending increased 0.2%
|
Personal income increased $50.2 billion (0.3 percent) in September according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $55.7 billion (0.3 percent) and personal consumption expenditures (PCE) increased $24.3 billion (0.2 percent).
Real DPI increased 0.3 percent in September and Real PCE increased 0.2 percent. The PCE price index decreased less than 0.1 percent. Excluding food and energy, the PCE price index increased less than 0.1 percent.
The increase in personal income in September primarily reflected increases in personal interest income, farm proprietors' income, and government social benefits to persons.
BEA adjusted September wages and salaries downward by $1.9 billion (at an annual rate) to account for the United Automobile Workers work stoppage that began on September 16th. This adjustment was necessary because the source data BEA primarily uses to estimate monthly wages and salaries – the Bureau of Labor Statistics' Current Employment Statistics survey – did not capture the strike's effects.
Farm proprietors' income increased $23.3 billion in August and $12.1 billion in September; payments associated with the Department of Agriculture's Market Facilitation Program were substantial contributors to both increases.
The $22.8 billion increase in real PCE in September reflected an increase of $18.4 billion in spending for goods and a $6.5 billion increase in spending for services (table 7). Within goods, new motor vehicles was the leading contributor to the increase. Within services, the largest contributor to the increase was spending for health care. Detailed information on monthly real PCE spending can be found on Table 2.3.6U.
Personal outlays increased $23.0 billion in September (table 3). Personal saving was $1.38 trillion in September and the personal saving rate, personal saving as a percentage of disposable personal income, was 8.3 percent.
Posted: October 31, 2019 Thursday 08:30 AM