U.S. Personal Income Decreases $221.8 billion or -1.1% in November

The Bureau of Economic Analysis (BEA) is reporting that according to their estimates personal income decreased by $221.8 billion or 1.1% in November. Disposable personal income (DPI) decreased $218.0 billion or 1.2% and personal consumption expenditures (PCE) decreased $63.3 billion or 0.4%. The decrease in personal income in November primarily reflected decreases in proprietors’ income (both nonfarm and farm) and government social benefits that were partly offset by an increase in compensation. Personal outlays decreased $66.8 billion in November. Personal saving was $2.22 trillion in November and the personal saving rate—personal saving as a percentage of disposable personal income—was 12.9%. The $58.5 billion decrease in real PCE in November reflected decreases of $53.7 billion in spending for goods and $12.1 billion in spending for services. Within goods, the leading contributors to the decrease were spending for clothing and footwear as well as motor vehicles and parts (mainly new motor vehicles). A notable offset was an increase in spending for food and beverages purchased for off premises consumption. Within services, the decrease primarily reflected decreases in spending for food services and accommodations as well as in household utilities (electricity and gas).

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Original Source:
Personal Income and Outlays, November 2020