The BEA released the Personal Income and Outlays report for August:
Personal income increased $90.4 billion (0.4 percent) in November according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $70.4 billion (0.4 percent) and personal consumption expenditures (PCE) increased $104.7 billion (0.6 percent).
Real DPI decreased 0.2 percent in November and Real PCE increased less than 0.1 percent; spending on services increased 0.5 percent and spending on goods decreased 0.8 percent. The PCE price index increased 0.6 percent. Excluding food and energy, the PCE price index increased 0.5 percent
emphasis addedThe November PCE price index increased 5.7 percent year-over-year and the November PCE price index, excluding food and energy, increased 4.7 percent year-over-year.
The following graph shows real Personal Consumption Expenditures (PCE) through November 2021 (2012 dollars). Note that the y-axis doesn’t start at zero to better show the change.
The dashed red lines are the quarterly levels for real PCE.
Personal income was above expectations, and the increase in PCE was below expectations.
Using the two-month method to estimate Q4 PCE growth, PCE was increasing at a 5.7% annual rate in Q4 2021. (Using the mid-month method, PCE was increasing at 4.2%).