Current Bureau of Economic Analysis (BEA) estimates, according to the newest economic release, show steady growth.
Personal income in the United States saw an uptick of $77.8 billion, or 0.3%, in September, according to the release. Concurrently, disposable personal income (DPI)—which is personal income after taxes—also increased by $56.1 billion or 0.3%. Personal consumption expenditures (PCE), a key indicator of consumer spending, surged by $138.7 billion or 0.7%.
In line with the contents of the official statement, the PCE price index for September increased by 0.4%. When food and energy were excluded, the index saw a more modest rise of 0.3%. Prices for goods increased by 0.2%, while the prices for services went up by 0.5%. Energy prices showed a significant increase of 1.7%, while food prices grew by 0.3%.
Real DPI declined by 0.1%, whereas real PCE increased by 0.4%, reflecting a 0.5% increase in goods and a 0.3% increase in services. The spending for services was driven by other services, particularly international travel, as well as housing and utilities. In terms of goods, prescription drugs and new motor vehicles led the way.
Per the information outlined in the official release, the month-over-month percentage change in personal income remained consistent at 0.3%, as did the DPI at 0.3%. However, PCE saw a notable increase from 0.4% in August to 0.7% in September. The price index for PCE remained stable at 0.4%, matching the figures from August.
The increase in current-dollar personal income primarily came from various sources, including compensation, income receipts on assets, nonfarm proprietors’ income and rental income.
Personal outlays—comprising PCE, personal interest payments and personal current transfer payments—increased by $175.1 billion in September. As per the press release, personal saving for the month stood at $687.7 billion, and the personal saving rate was 3.4%.
