Personal income increased $155.3 billion (0.7 percent) in October, according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $132.9 billion (0.7 percent) and personal consumption expenditures (PCE) increased $147.9 billion (0.8 percent).

The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.2 percent (table 9). Real DPI increased 0.4 percent in October and Real PCE increased 0.5 percent; goods increased 1.1 percent and services increased 0.2 percent (tables 5 and 7). 

The increase in current-dollar personal income in October primarily reflected increases in compensation and government social benefits (table 3). The increase in compensation was led by private wages and salaries. Within private wages and salaries, both services-producing industries and goods-producing industries increased. The increase in government social benefits reflected increases in "other" benefits, primarily reflecting one-time refundable tax credits issued by states. For more information, refer to “How are state refundable tax credits recorded in the National Income and Product Accounts (NIPAs)?”

The $147.9 billion increase in current-dollar PCE in October reflected an increase of $85.9 billion in spending for goods and an increase of $61.9 billion in spending for services (table 3). Within goods, new motor vehicles (led by light trucks) and gasoline and other energy goods were the leading contributors to the increase. Within services, the largest contributor to the increase was spending for food services and accommodations. This increase was partly offset by a decrease in financial services and insurance (led by financial service charges, fees, and commissions). Detailed information on monthly PCE spending can be found on Table 2.3.5U.

Personal outlays  increased $154.2 billion in October (table 3). Personal saving was $426.5 billion in October and the personal saving rate—personal saving as a percentage of disposable personal income—was 2.3 percent (table 1).

Prices

From the preceding month, the PCE price index for October increased 0.3 percent (table 9). Prices for goods increased 0.3 percent, reflecting an increase in prices for nondurable goods (led by gasoline and other energy goods) that was partly offset by widespread decreases in prices for durable goods. Prices for services increased 0.4 percent (led by food services and accommodations, and housing services). Food prices increased 0.4 percent and energy prices increased 2.5 percent. Excluding food and energy, the PCE price index increased 0.2 percent. Detailed monthly PCE price indexes can be found on Table 2.3.4U.

From the same month one year ago, the PCE price index for October increased 6.0 percent (table 11). Prices for goods increased 7.2 percent and prices for services increased 5.4 percent. Food prices increased 11.6 percent and energy prices increased 18.4 percent. Excluding food and energy, the PCE price index increased 5.0 percent from one year ago. 

Real PCE

The 0.5 percent increase in real PCE in October reflected increases of 1.1 percent in spending on goods and 0.2 percent in spending on services (table 7). Within goods, spending on new motor vehicles (mainly light trucks) was the leading contributor. Within services, the largest contributors to the increase were spending on health care, food services and accommodations, as well as housing and utilities. These increases were partly offset by a decrease in financial services and insurance. Detailed information on monthly real PCE spending can be found on Table 2.3.6U.

Updates to Personal Income and Outlays

Estimates have been updated for April through September. For April through June, estimates for compensation, personal taxes, and contributions for government social insurance reflect the incorporation of updated second-quarter wage and salary data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages program. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2012) dollar DPI and PCE, are provided below for August and September.

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Next release: December 23, 2022, at 8:30 a.m. EST
Personal Income and Outlays, November 2022