Wednesday, November 30, 2016

Personal Income increased 0.6% in October, Spending increased 0.3%

by Bill McBride on 11/30/2016 08:37:00 AM

The BEA released the Personal Income and Outlays report for October:

Personal income increased $98.6 billion (0.6 percent) in October according to estimates released today by the Bureau of Economic Analysis. ... personal consumption expenditures (PCE) increased $38.1 billion (0.3 percent).
...
Real PCE increased 0.1 percent. The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.1 percent.
The October PCE price index increased 1.4 percent year-over-year (compared to 1.2 percent YoY in September) and the October PCE price index, excluding food and energy, increased 1.7 percent year-over-year (same as in September).

The following graph shows real Personal Consumption Expenditures (PCE) through October 2016 (2009 dollars). Note that the y-axis doesn't start at zero to better show the change.

Personal Consumption Expenditures Click on graph for larger image.

The dashed red lines are the quarterly levels for real PCE.

The increase in personal income was above consensus, and the increase in PCE was at consensus expectations.

A solid increase in personal income.