Personal income increased $80.1 billion (0.4 percent) in November, according to estimates released [Friday] by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $68.6 billion (0.4 percent) and personal consumption expenditures (PCE) increased $19.8 billion (0.1 percent). The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent. Real DPI increased 0.3 percent in November and real PCE increased less than 0.1 percent; goods decreased 0.6 percent and services increased 0.3 percent.Other than the decline in real spending on goods, this is what a slow-to-moderate growth, stable price economy looks like. And even the decline in durable goods (and particularly vehicles) seems to be a seasonally-adjusted thing, as October had a strong increase, and this reverted to the norm in November. It's also noteworthy that COVID-era increases in services spending have now exceeded the increases in COVID-era non-durable goods spending. the retail sales report from November, it looks like overall consumer spending was OK as 2022 wound down. On the income side, it was another steady (but not huge) increase in job earnings and overall income, which led to the first increase in savings since July.
Ventings from a guy with an unhealthy interest in budgets, policy, the dismal science, life in the Upper Midwest, and brilliant beverages.
Monday, December 26, 2022
Income, spending, inflation, all muted in November
At the end of last week, we got more evidence that the US economy's growth was downshifting, with the always-important income and spending report for November. Not only did money coming and money coming out see a slowdown, but so did price growth.
Posted by Jake formerly of the LP at 10:44:00 AM
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