Updated: 01-Dec-22 09:38 ET
| November Personal Income and Spending |
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| Updated: 01-Dec-22 09:38 ET |
Highlights
- Personal income increased 0.7% month-over-month in October (Briefing.com consensus 0.4%) following a 0.3% increase in September.
- Personal spending jumped 0.8% (Briefing.com consensus 0.8%) following a 0.6% increase in September.
- The PCE Price Index was up 0.3% month-over-month (Briefing.com consensus 0.4%) and the core-PCE Price Index, which excludes food and energy, increased 0.2% (Briefing.com consensus 0.2%). On a year-over-year basis, the PCE Price Index was up 6.0%, versus 6.3% in September, and the core-PCE Price Index was up 5.0%, versus 5.2% in September.
Key Factors
- Real personal spending was up 0.5% month-over-month and up 1.8% year-over-year (versus up 2.0% in September). Real disposable personal income was up 0.4% month-over-month and down 3.0% year-over-year (versus down 3.4% in September).
- Wages and salaries were up 0.5% month-over-month following a 0.6% increase in September.
- Proprietors' income was flat month-over-month following a 0.3% increase in September.
- Rental income was up 0.3% month-over-month after increasing 0.3% in September.
- Personal current transfer receipts increased 1.6% month-over-month after being unchanged in September.
- The personal savings rate as a percentage of disposable income was 2.3%, down from 2.4% in September.
Big Picture
- The key takeaway from the report was the improvement in the inflation readings, particularly the core-PCE Price Index given Fed Chair Powell's emphasis that the Fed's policy tools are better designed for working on core inflation.
| Category | OCT | SEP | AUG | JUL | JUN |
| Personal Income | |||||
| Total Income | 0.7% | 0.4% | 0.3% | 0.5% | 0.5% |
| Wage and Salary | 0.5% | 0.6% | 0.4% | 0.8% | 0.4% |
| Disposable Income | 0.7% | 0.3% | 0.3% | 0.4% | 0.6% |
| Savings Rate | 2.3% | 2.4% | 2.8% | 3.2% | 2.7% |
| Personal Consumption | |||||
| Total (Nominal) | 0.8% | 0.6% | 0.7% | -0.2% | 1.2% |
| Total (Real, Chain $) | 0.5% | 0.3% | 0.4% | -0.1% | 0.2% |
| Core PCE Deflator | |||||
| Month/Month | 0.2% | 0.5% | 0.5% | 0.1% | 0.6% |
| Year/Year | 5.0% | 5.2% | 4.9% | 4.7% | 5.0% |