by calculated risk 2024/9/27 08:30:00 AM
BEA has released personal income and expenses August report:
Personal income in August increased by $50.5 billion (0.2% monthly rate)according to estimates released today by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI), which is personal income less personal current taxes, increased by $34.2 billion (0.2%) and personal consumption expenditures (PCE) increased by $47.2 billion (0.2%).
PCE price index rose 0.1%. The PCE price index, which excludes food and energy, rose 0.1%. Real DPI increased by 0.1% and real PCE increased by 0.1% in August. The increase in goods was less than 0.1% and the increase in services was 0.2%.
Emphasis added
of August PCE price index rose 2.2% year-on-yeardown from 2.5% year-on-year in July and down from a recent peak of 7.2% in June 2022.
The following graph shows real personal consumption expenditures (PCE) (2017 dollars) through August 2024. Note that the Y-axis does not start at zero to better illustrate the changes..
Click on the graph to see a larger image.
The red dashed line is the quarterly level of real PCE.
Personal income was higher than expected, but PCE was lower than expected.
Inflation was lower than expected.
Using the two-month method to estimate real PCE growth in the third quarter, real PCE grew at an annualized rate of 3.3% in the third quarter of 2024. (Using the mid-month method, real PCE increased by 2.6%). This suggests solid growth for PCE in the third quarter.
