Updated: 24-Nov-21 10:50 ET
| October Personal Income and Spending |
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| Updated: 24-Nov-21 10:50 ET |
Highlights
- Personal income increased 0.5% month-over-month in October (Briefing.com consensus +0.2%) while personal spending increased 1.3% (Briefing.com consensus +1.0%).
- The PCE Price Index jumped 0.6%, as expected, and the core PCE Price Index, which excludes food and energy, rose 0.4%, also as expected.
Key Factors
- On a year-over-year basis, the PCE Price Index was up 5.0%, versus 4.4% in September, and the core PCE Price Index was up 4.1%, versus 3.7% in September.
- Real disposable personal income was down 0.9% year-over-year.
- Real personal spending was up 0.7% month-over-month and up 6.6% year-over-year.
- Personal current transfer receipts declined 0.5% following a 6.9% decline in September.
- Wages and salaries increased 0.8% month-over-month after increasing 0.9% in September.
Big Picture
- The key takeaway from the report is that prices increased at a pace faster than income, stealing the purchasing power of those income gains and leading to more spending out of savings. Real disposable personal income declined 0.3% month-over-month while the personal savings rate, as a percentage of disposable personal income, fell to 7.3% from 8.2%.
| Category | OCT | SEP | AUG | JUL | JUN |
| Personal Income | |||||
| Total Income | 0.5% | -1.0% | 0.3% | 1.2% | 0.3% |
| Wage and Salary | 0.8% | 0.9% | 0.4% | 1.1% | 1.1% |
| Disposable Income | 0.3% | -1.3% | 0.3% | 1.3% | 0.1% |
| Savings Rate | 7.3% | 8.2% | 9.9% | 10.6% | 9.5% |
| Personal Consumption | |||||
| Total (Nominal) | 1.3% | 0.6% | 1.1% | 0.0% | 1.1% |
| Total (Real, Chain $) | 0.7% | 0.3% | 0.7% | -0.4% | 0.6% |
| Core PCE Deflator | |||||
| Month/Month | 0.4% | 0.2% | 0.3% | 0.3% | 0.5% |
| Year/Year | 4.1% | 3.7% | 3.6% | 3.6% | 3.6% |