WASHINGTON–Americans’ personal income increased $84.9 billion (0.5%) in October, according to estimates released by the Bureau of Economic Analysis.
Disposable personal income (DPI) increased $81.7 billion (0.5%) and personal consumption expenditures (PCE) increased $86.9 billion (0.6 %), the BEA said.
Real DPI increased 0.3% in October and Real PCE increased 0.4%. The PCE price index increased 0.2%. Excluding food and energy, the PCE price index increased 0.1%, according to the figures.
The BEA said the increase in personal income in October primarily reflected increases in wages and salaries, proprietors’ income, and government social benefits to persons. Farm proprietors’ income increased $11.6 billion in October, which included subsidy payments associated with the Department of Agriculture’s Market Facilitation Program.
The $56.5 billion increase in real PCE in October reflected an increase of $14.3 billion in spending for goods and a $41.4 billion increase in spending for services, the BEA said. Within goods, spending for prescription drugs was the leading contributor to the increase. Within services, the largest contributor to the increase was spending for household electricity and gas.
Personal outlays increased $90.8 billion in October (table 3). Personal saving was $967.8 billion in October and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.2%.