December 6, 2013

Personal income decreased 0.1 percent in October after increasing 0.5 percent in September. Wages and salaries, the largest component of personal income, rose 0.1 percent after rising 0.4 percent. Proprietors’ income fell 1.4 percent in October due to a decline in farm proprietors’ income after farmers received a one-time payment in September for a settlement of a lawsuit against the Department of Agriculture.

Current-dollar disposable personal income (DPI), after-tax income, decreased 0.2 percent in October after increasing 0.5 percent in September.

Real DPI, income adjusted for taxes and inflation, decreased 0.2 percent in October after rising 0.4 percent in September.

Real consumer spending, spending adjusted for price changes, increased 0.3 percent in October after increasing 0.1 percent in September. Spending on durable goods increased in October after decreasing in September.

PCE prices were flat in October after rising 0.1 percent in September. Excluding food and energy, PCE prices rose 0.1 percent in October, the same as in September.

Personal saving rate
Personal saving as a percent of DPI was 4.8 percent in October and 5.2 percent in September.

To learn more about personal income and outlays, read the full report.