Personal Income, Disposable Income, and Personal Consumption Expenditures All Increase in October

The US Bureau of Economic Analysis (BEA) reported on Thursday (11-30-23) that according to its estimates, personal income (PI) increased $57.1 billion, or 0.2%, in October. Disposable personal income (DPI), personal income less personal current taxes, increased $63.4 billion, or 0.3%. Personal consumption expenditures (PCE) increased $41.2 billion, or 0.2%.

The PCE price index increased less than 0.1% in October. Excluding food and energy, the PCE price index increased 0.2%. Real DPI decreased 0.3% and real PCE increased 0.2%; goods increased 0.1% and services increased 0.2%.

Year-over-year, the PCE price index for October increased 3.0%. Prices for goods increased 0.2%, while prices for services increased 4.4%. Food prices increased 2.4%, while energy prices declined 4.8%. Excluding food and energy, the PCE price index increased 3.5% from one year ago.

Personal outlays—the sum of PCE, personal interest payments, and personal current transfer payments—increased $43.8 billion in October. Personal saving was $768.6 billion, and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.8%.