Spending Up Far More Than Real Income: Per Capita Income Stagnates

Real (inflation-adjusted) income rose 0.1% in November. Expenditures rose 0.4%. Per capita, income is stagnant.

The BEA’s Personal Income and Outlays report shows personal income increased $54.0 billion (0.3%) in November.

Income and Expenditures Details

Personal income increased $54.0 billion (0.3%)

Disposable personal income (DPI) increased $50.9 billion (0.4%)

Personal consumption expenditures (PCE) increased $87.1 billion (0.6%)

Real Income and Expenditures Details

Real DPI increased 0.1%

Real PCE increased 0.4%

The PCE price index increased 0.2%

Excluding food and energy, the PCE price index increased 0.1%

Income vs Expenditures

For November, real expenditures rose 4 times faster than real income. Economists are happy about the spending, no matter how unsustainable the trend. A wealth effect is in play.

Per Capita Income

On a per capita basis, income has stagnated.

Economists are happy about the spending, no matter how unsustainable the trend. A wealth effect is in play. A hurricane impact in autos and housing is also in play.