Personal income increased $77.8 billion (0.3 percent at a monthly rate) in September, according to estimates released today by the Bureau of Economic Analysis (table 2 and table 3). Disposable personal income (DPI), personal income less personal current taxes, increased $56.1 billion (0.3 percent) and personal consumption expenditures (PCE) increased $138.7 billion (0.7 percent).

The PCE price index increased 0.4 percent. Excluding food and energy, the PCE price index increased 0.3 percent (table 5). Real DPI decreased 0.1 percent in September and real PCE increased 0.4 percent; goods increased 0.5 percent and services increased 0.3 percent (table 3 and table 4).

The increase in current-dollar personal income in September primarily reflected increases in compensation, personal income receipts on assets, nonfarm proprietors’ income, and rental income of persons (table 2).

The $138.7 billion increase in current-dollar PCE in September reflected an increase of $96.2 billion in spending for services and a $42.5 billion increase in spending for goods (table 2). Within services, the largest contributors to the increase were other services (led by international travel), housing and utilities (led by housing), health care (led by hospitals and nursing homes), and transportation (led by air transportation). Within goods, other nondurable goods (led by prescription drugs) and motor vehicles and parts (led by new motor vehicles) were the leading contributors to the increase. Detailed information on monthly PCE spending can be found on Table 2.4.5U.

Personal outlays, the sum of PCE, personal interest payments, and personal current transfer payments, increased $175.1 billion in September (table 2). Personal saving was $687.7 billion in September and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.4 percent (table 1).

Prices

From the preceding month, the PCE price index for September increased 0.4 percent (table 5). Prices for goods increased 0.2 percent and prices for services increased 0.5 percent. Food prices increased 0.3 percent and energy prices increased 1.7 percent. Excluding food and energy, the PCE price index increased 0.3 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.

From the same month one year ago, the PCE price index for September increased 3.4 percent (table 7). Prices for goods increased 0.9 percent and prices for services increased 4.7 percent. Food prices increased 2.7 percent and energy prices decreased by less than 0.1 percent. Excluding food and energy, the PCE price index increased 3.7 percent from one year ago.

Real PCE

The 0.4 percent increase in real PCE in September reflected an increase of 0.5 percent in spending on goods and an increase of 0.3 percent in spending on services (table 4). Within goods, the largest contributors to the increase were motor vehicles and parts (both new and used vehicles) and other nondurable goods (led by prescription drugs). Within services, the largest contributor to the increase was other services (led by international travel). Detailed information on monthly real PCE spending can be found on Table 2.4.6U.

Updates to Personal Income and Outlays

Estimates have been updated for July and August. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2017) dollar DPI and PCE, are provided below.

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Next release: November 30, 2023, at 8:30 a.m. EST
Personal Income and Outlays, October 2023