U.S. Personal Income and Spending Rise in September Amid Steady Economic Growth

In September, personal income in the U.S. rose by $71.6 billion, reflecting a monthly increase of 0.3%, as reported by the U.S. Bureau of Economic Analysis.

Disposable personal income (DPI) also saw a boost, climbing by $57.4 billion, while personal consumption expenditures (PCE) surged by $105.8 billion, marking a 0.5% increase.

The PCE price index experienced a 0.2% rise, with a 0.3% increase when excluding food and energy prices. Real DPI saw a modest gain of 0.1%, while real PCE increased by 0.4%. Notably, spending on goods rose by 0.7%, driven primarily by nondurable goods, particularly prescription drugs, while services grew by 0.2%, led by health care and housing expenditures.

The increase in current-dollar personal income was mainly attributed to higher compensation and personal current transfer receipts, despite declines in personal interest income and proprietors’ income. Personal outlays also rose by $106.3 billion, leading to a personal saving rate of 4.6%, with total personal savings reaching $1 trillion.

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On the price front, goods prices dipped by 0.1%, while service prices climbed by 0.3%. Food prices increased by 0.4%, contrasted by a 2.0% decrease in energy prices. Year-over-year, the PCE price index rose by 2.1%, with service prices advancing significantly compared to the previous year.

Alexander Stefanov