Featured image: AI-generated explanatory illustration of U.S. consumption and prices, not a photograph of a real store or a statistical chart.
The U.S. Bureau of Economic Analysis reported on October 29 that the personal consumption expenditures price index rose 3.6% in September from a year earlier. The core PCE index, which excludes food and energy, increased 3.1% year over year. Inflation-adjusted consumer spending rose less than 0.1% from the preceding month, leaving real spending essentially flat.
The overall PCE price index increased 0.5% from August, a larger monthly rise than August’s 0.3%. Core prices rose 0.3% for the month, matching the August increase. The year-over-year figures compare prices with a year earlier and cover a different period from the monthly changes.
Nominal spending rises 0.5%; real disposable income falls
Consumer spending before adjustment for price changes increased 0.5% in September from August, with gains in both goods and services. With PCE prices also up 0.5%, real spending growth rounded to 0.0% at one decimal place. Real spending had risen 0.5% in August.
Personal income and disposable personal income—income after personal current taxes—each rose 0.2% for the month. BEA said the personal income increase primarily reflected gains in compensation and government social benefits. Despite the nominal income increase, inflation-adjusted disposable income fell 0.3%.
The personal saving rate was 3.8% of disposable income. Under BEA’s definitions, the rate measures the share left as saving after consumer spending, personal interest payments and personal current transfer payments.
The figures are BEA estimates. The report also updated July and August income estimates to incorporate revised employment and wage data, among other information. The next report, covering October personal income and outlays, is scheduled for November 25 at 8:30 a.m. Eastern Standard Time.