Personal Income, Spending Increase

By Staff Writer November 01, 2022 234

Personal income increased $78.9 billion (0.4%) in September, according to estimates by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $71.3 billion (0.4%) and personal consumption expenditures (PCE) increased $113.0 billion (0.6%).

The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.5 percent. Real DPI increased less than 0.1% in September and Real PCE increased 0.3%; goods increased 0.4 percent and services increased 0.3%.

The increase in current-dollar personal income in September primarily reflected increases in compensation and personal income receipts on assets. The increase in compensation was led by private wages and salaries. Within private wages and salaries, both services-producing industries and goods-producing industries increased. The increase in personal income receipts on assets reflected increases in both interest and dividend income.

The $113.0 billion increase in current-dollar PCE in September reflected an increase of $94.7 billion in spending for services and an increase of $18.3 in spending for goods. Within services, the leading contributors were housing and utilities (mainly housing), “other” services (mainly international travel), and transportation services (mainly air transportation). Within goods, increases in “other” nondurable goods (mainly prescription drugs) and motor vehicles and parts (mainly new motor vehicles) were partly offset by a decrease in gasoline and other energy goods.

Personal outlays increased $125.5 billion in September. Personal saving was $581.6 billion in September and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.1%.

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Last modified on Tuesday, 01 November 2022 02:26