November 02, 2020
In September, personal income rose $170.3 billion (0.9%) in the U.S, according to estimates released by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $150.3 billion (0.9%) and personal consumption expenditures (PCE) rose $201.4 billion (1.4%).
Real DPI climbed 0.7% in September, and Real PCE rose 1.2%. The PCE price index increased 0.2%. The PCE price index less food and energy rose 0.2%.
The rise in personal income in September was primarily attributed to the increases in proprietors’ income, compensation of employees, and rental income of persons that were partly offset by a decrease in government social benefits. Moreover, according to BEA, “within compensation, government wage and salary disbursements decreased $7.4 billion in September, following an increase of $23.9 billion in August. Temporary and intermittent Census decennial workers boosted government wages and salaries by $9.3 billion in September after adding $10.8 billion in August. Within government social benefits, unemployment insurance benefits decreased while “other” social benefits increased. Within unemployment insurance, the leading contributor was a decrease in Pandemic Unemployment Compensation, which provided weekly supplemental payments of $600 that expired on July 31. 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.”
In September, the real PCE rose by $159.2 billion, revealing a $109.9 billion increase in spending for goods and a $61.0 billion increase in spending on services. Within goods, spending on clothing and footwear and motor vehicles and parts were the main contributor to the rise. Within services, the leading contributors to the increase were spending on health care as well as recreation services.
Personal outlays rose $217.5 billion in September while personal saving was $2.51 trillion, and the personal saving rate, personal saving as a percentage of disposable personal income, stood at 14.3%.
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