Personal income increased 0.9 percent while consumer spending increased 1.4 percent in September, according to estimates released today by the Bureau of Economic Analysis.
Personal income
The increase in personal income in September primarily reflected increases in proprietors’ income and compensation. Rental income of persons also contributed to the increase.
Partially offsetting these increases was a decrease in government social benefits. Within government social benefits, unemployment insurance benefits decreased while “other” social benefits increased. Within unemployment, the leading contributor was a decrease in Pandemic Unemployment Compensation payments. Within “other” social benefits, there was an increase in Lost Wages Supplemental Payments, a Federal Emergency Management Administration program that provides wage assistance to individuals impacted by the pandemic. Additional information on factors affecting monthly personal income can be found in “Effects of Selected Federal Pandemic Response Programs on Personal Income”.
Consumer spending
Current dollar consumer spending increased in September, reflecting increases in both goods and services.
• Within goods, the leading contributor to the increase was spending for motor vehicles and parts, led by new motor vehicles. Spending for new motor vehicles was based on Ward’s Automotive Sales Report data.
• Within services, the leading contributor to the increase was spending for health care, led by outpatient services. Spending for outpatient services was based on volume data for outpatient visits and revenue data.
For more information, read the full release.