WASHINGTON–American’s personal income increased $93.4 billion (0.5%) in October, while the costs of goods and services were up 5% from one year earlier, according to estimates released just ahead of Thanksgiving by the Bureau of Economic Analysis.
The new figures come as many Americans remain concerned by persistent high inflation.
Disposable personal income (DPI) increased $63.0 billion (0.3%) and personal consumption expenditures (PCE) increased $214.3 billion (1.3%), the BEA added.
Among the other data points:
- Real DPI decreased 0.3% in October
- Real PCE increased 0.7%; goods increased 1.0% and services increased 0.5%
- The PCE price index increased 0.6%. Excluding food and energy, the PCE price index increased 0.4%
A Partial Offset
“The increase in personal income in October primarily reflected increases in compensation of employees and personal income receipts on assets that were partly offset by a decrease in government social benefits,” the BEA said in releasing the data. “Within compensation, the increase primarily reflected an increase in private wages and salaries. Within personal income receipts on assets, both dividend income and interest income increased.
“Within government social benefits, unemployment insurance decreased, reflecting decreases in payments from three pandemic-related unemployment programs: Pandemic Unemployment Compensation Payments, Pandemic Emergency Unemployment Compensation, and Pandemic Unemployment Assistance,” the BEA added.
According to the BEA, the $214.3 billion increase in current-dollar PCE in October reflected an increase of $123.8 billion in spending for goods and an increase of $90.5 billion in spending for services.
Within goods, increases were widespread, led by motor vehicles and parts. Within services, increases were also widespread, led by “other” services (mainly international travel), the BEA said.
Personal Outlays
Personal outlays increased $216.8 billion in October. Personal saving was $1.32 trillion in October and the personal saving rate—personal saving as a percentage of disposable personal income—was 7.3%.
Meanwhile, with inflation remaining high, the BEA reported the PCE price index for October increased 5.0% from one year ago, reflecting increases in both goods and services. Energy prices increased 30.2% while food prices increased 4.8%.
Excluding food and energy, the PCE price index for October increased 4.1% from one year ago, the BEA added.
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