Income and outlays data provide an important and frequent look into the state of our economy. Of course, income is, for the most part, a necessary condition for spending. Outlays, in the report on personal consumption expenditures (PCE) represents over two-thirds of our nation’s output. Both were mixed in October 2020 according to the Bureau of Economic Analy
PCE Price Index
When it comes to the American economy, the consumer is the primary driver. In order for consumers to push output ahead, they need income to spend.
Incomes and outlays improved to start the second quarter of this year according to the Bureau of Economic Analysis. Personal income rose 0.3 percent in April 2018, and spending jumped 0.6 percent. Disposable personal income (DPI), aka after-tax pay, rose 0.4 percent or $60.9 billion, leading to some decay in the nation’s savings rate.
Americans made more and spent more money in March 2018 according to the Bureau of Economic Analysis’ report on Incomes and Outlays. However, in typical American style, consumers spent faster than their incomes grew, so the savings rate suffered. Finally, inflation’s trend seems to be nearing the Federal Reserve’s explicit target.