Personal Consumption Expenditures, Personal Income, and Disposable Income All Rise in September

The US Bureau of Economic Analysis (BEA) reported on Friday (10-28-22) that according to its estimates, personal income (PI) increased $78.9 billion, or 0.4%, in September; disposable personal income (DPI) increased $71.3 billion, or 0.4%; and personal consumption expenditures (PCE) increased $113.0 billion, or 0.6%.

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

Year-over-year the PCE price index for September increased 6.2%, reflecting prices for goods increasing 8.1% and the prices for services increasing 5.3%. Energy prices increased 20.3% in September, while food prices increased 11.9%. Excluding food and energy, the PCE price index for September increased 5.1% year-over-year.

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%.