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Thursday, November 30, 2023 Contact: Connie O’Connell, (301) 278-9003 Personal Income and Outlays, October 2023 Personal income increased $57.1 billion (0.2 percent at a monthly rate) in October. Disposable personal income (DPI)—personal income less personal current taxes—increased $63.4 billion (0.3 percent). Personal outlays—the sum of personal consumption expenditures (PCE), personal interest payments, and personal current transfer payments—increased $43.8 billion (0.2 percent) and consumer spending increased $41.2 billion (0.2 percent). Personal saving was $768.6 billion and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.8 percent in October. 6.0 0.8 5.0 4.0 0.6 3.0 0.4 2.0 0.2 1.0 0.0 0.0 Apr. May Jun. Jul. Aug. Sep. Percent Percent change from prior period Disposable Personal Income, Outlays, and Saving 1.0 Oct. 2023 DPI, % change from prior period U.S. Bureau of Economic Analysis Outlays, % change from prior period Personal saving as a % of DPI Seasonally adjusted Personal income In October, personal income increased, primarily reflecting increases in personal income receipts on assets and compensation that were partly offset by a decrease in personal current transfer receipts. • The increase in personal income receipts on assets was in both personal dividend income and personal interest income. • Within compensation, the increase was led by government wages and salaries, based on data from the Bureau of Labor Statistics’ (BLS) Current Employment Statistics (CES). • The decrease in personal current transfer receipts was led by other government social benefits (led by benefits from the Supplemental Nutrition Assistance Program) and Medicaid. BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and regional economic data—are available at www.bea.gov. Email alerts are also available. Estimates of November 2023 Personal Income and Outlays will be released on December 22, 2023. Consumer spending The $41.2 billion increase in consumer spending in October reflected an increase in spending for services that was partly offset by a decrease in spending for goods. Month-to-Month Change in Consumer Spending Consumer spending Goods Services 0.9 0.6 Percent • Within services, the largest contributors to the increase were health care, housing and utilities (led by housing), and other services (led by international travel). The increase in health care was led by hospitals, based on BLS CES and private data. The increase in international travel reflected National Travel and Tourism Office data on the number of travelers. Partly offsetting these increases was a decrease in financial services and insurance (led by financial service charges, fees, and commissions). 0.3 0.0 -0.3 Jun. Jul. Aug. Sep. Oct. 2023 • Within goods, the largest contributors to the U.S. Bureau of Economic Analysis Seasonally adjusted decrease were motor vehicles and parts (led by new light trucks), based on unit sales data from Wards Intelligence, and gasoline and other energy goods based on BLS consumer price indexes and Energy Information Administration data. Partly offsetting these decreases was an increase in other nondurable goods (led by prescription drugs), based on private trade data. Changes in Monthly Consumer Spending, October 2023 Consumer spending increased $41.2 billion Goods Services Health care 21.8 Housing and utilities 17.1 Other services 16.3 Other nondurable goods 6.5 Transportation services 5.5 Food services and accommodations 5.1 Food and beverages 4.1 Other durable goods 0.9 Recreational goods and vehicles 0.5 Final expenditures of NPISHs -0.9 Clothing and footwear -1.9 Recreation services -3.1 Furnishings and durable household equipment -3.8 Financial services and insurance -8.7 Gasoline and other energy goods -8.7 Motor vehicles and parts U.S. Bureau of Economic Analysis -9.5 Billions of dollars Seasonally adjusted annual rates Page 2 of 3 PCE price index From the preceding month, the PCE price index for October increased less than 0.1 percent. Food prices increased 0.2 percent and energy prices decreased 2.6 percent. Excluding food and energy, the PCE price index increased 0.2 percent. For a comparison of PCE prices to BLS consumer price indexes, refer to NIPA Table 9.1U. Reconciliation of Percent Change in the CPI with Percent Change in the PCE Price Index. From the same month one year ago, the PCE price index for October increased 3.0 percent. Prices for services increased 4.4 percent and prices for goods increased 0.2 percent. Food prices increased 2.4 percent and energy prices decreased 4.8 percent. Excluding food and energy, the PCE price index increased 3.5 percent from one year ago. Percent Change in PCE Price Indexes from Month One Year Ago PCE 7.0 PCE excluding food and energy 6.0 Percent 5.0 4.0 3.0 2.0 0.0 Oct. Nov. Dec. 2022 U.S. Bureau of Economic Analysis Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. 2023 Seasonally adjusted Real disposable personal income and consumer spending Real DPI increased 0.3 percent in October. Real consumer spending increased 0.2 percent, reflecting an increase in spending on services of 0.2 percent and an increase in spending on goods of 0.1 percent. Within services, the largest contributor to the increase was other services (led by international travel). Within goods, the leading contributor to the increase was gasoline and other energy goods (led by motor vehicle fuels, lubricants, and fluids). Page 3 of 3
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