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HomeNewsEconomyBEA: Personal Income and Outlays Beat Forecast in October

BEA: Personal Income and Outlays Beat Forecast in October

People count money at Macy's Herald Square store during the early opening of the Black Friday sales in the Manhattan borough of New York, November 26, 2015. (Photo: Reuters)
People count money at Macy's Herald Square store during the early opening of the Black Friday sales in the Manhattan borough of New York, November 26, 2015. (Photo: Reuters)

People count money at Macy’s Herald Square store during the early opening of the Black Friday sales in the Manhattan borough of New York, November 26, 2015. (Photo: Reuters)

The Bureau of Economic Analysis (BEA) said personal income increased by 0.4%, or $65.1 billion in October, slightly beating the 0.3% median consensus forecast. Disposable personal income (DPI) increased $66.1 billion (0.5%) and personal consumption expenditures (PCE) increased $34.4 billion (0.3%).

The PCE is the gauge most-closely watched by the Federal Reserve Open Markets Committee (FOMC) when they weigh whether to increase interest rates. While the 1.6% year-over-year change is slightly better than the median consensus forecast, it’s likely not enough for the Fed to hike rates at a faster pace.

Real DPI increased 0.3% in October and Real PCE increased 0.1%. The PCE price index increased 0.1%. Excluding food and energy, known as the so-called core PCE, the index gained by 0.2%.

The $13.1 billion increase in real PCE in October was largely fueled by an increase of $11.4 billion in spending for goods and a $2.7 billion increase in spending for services.

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PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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