Wednesday , December 2 2020
Home / Calculated Risk / Personal Income increased 0.9% in September, Spending increased 1.4%

Personal Income increased 0.9% in September, Spending increased 1.4%

Summary:
The BEA released the Personal Income and Outlays report for September: Personal income increased 0.3 billion (0.9 percent) in September according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased 0.3 billion (0.9 percent) and personal consumption expenditures (PCE) increased 1.4 billion (1.4 percent). Real DPI increased 0.7 percent in September and Real PCE increased 1.2 percent. The PCE price index increased 0.2 percent (table 9). Excluding food and energy, the PCE price index increased 0.2 percent.The September PCE price index increased 1.4 percent year-over-year and the September PCE price index, excluding food and energy, increased 1.5 percent year-over-year.The following graph shows real Personal Consumption

Topics:
Calculated Risk considers the following as important:

This could be interesting, too:

Tyler Durden writes One-World Currency Included In The “Endgame” Reset

Tyler Durden writes Not Just Newsom: San Francisco, San Jose Mayors Busted Violating Own COVID Guidelines

Tyler Durden writes “That’s A Dire Warning”: Dalio’s Chart Hints At What Beijing Is Really Up To

Mike Shedlock writes Trump Tells Georgia Gov. to “Call Off the Election” as Barr Admits No Widespread Fraud

The BEA released the Personal Income and Outlays report for September:
Personal income increased $170.3 billion (0.9 percent) in September according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $150.3 billion (0.9 percent) and personal consumption expenditures (PCE) increased $201.4 billion (1.4 percent).

Real DPI increased 0.7 percent in September and Real PCE increased 1.2 percent. The PCE price index increased 0.2 percent (table 9). Excluding food and energy, the PCE price index increased 0.2 percent.
The September PCE price index increased 1.4 percent year-over-year and the September PCE price index, excluding food and energy, increased 1.5 percent year-over-year.

The following graph shows real Personal Consumption Expenditures (PCE) through September 2020 (2012 dollars). Note that the y-axis doesn't start at zero to better show the change.

Personal Income increased 0.9% in September, Spending increased 1.4% Click on graph for larger image.

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

Personal income was higher than expected,  and the increase in PCE was above expectations.

Note the red line for Q3 (the quarterly level of PCE).   This is still 3.3% below the Q4 2019 level for PCE.

Leave a Reply

Your email address will not be published. Required fields are marked *