Thursday, the U.S. Bureau of Economic Analysis (BEA) announced that personal income increased 0.5 percent in October after increasing 0.2 percent in September. Wages and salaries, the largest component of personal income, increased 0.3 percent in October, the same increase as in September.
Personal income increased $84.9 billion (0.5 percent) in October according to estimates released by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $81.7 billion (0.5 percent) and personal consumption expenditures (PCE) increased $86.9 billion (0.6 percent).
Real DPI increased 0.3 percent in October and Real PCE increased 0.4 percent. The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.1 percent.
The increase in personal income in October primarily reflected increases in wages and salaries, proprietors’ income, and government social benefits. Farm proprietors’ income increased $11.6 billion in October, which included subsidy payments associated with the Department of Agriculture’s Market Facilitation Program.
The $56.5 billion increase in real PCE in October reflected an increase of $14.3 billion in spending for goods and a $41.4 billion increase in spending for services. Within goods, spending for prescription drugs was the leading contributor to the increase. Within services, the largest contributor to the increase was spending for household electricity and gas.
Personal outlays increased $90.8 billion in October. Personal saving was $967.8 billion in October and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.2 percent.
According to recent polling by Gallup a remarkably low 13 percent are calling President Trump’s economy a problem. Confidence in the economy is hitting a 14-year high, and seven in 10 said tgat 2018 is a good time to find a quality job. The key points from Gallup’s just-published economic survey: Economic Confidence Index at +31 in November, remaining at its highest since 2004. 55 percent rate current economic conditions positively. A record-tying 68 percent say it is a good time to find a quality job.
The unemployment rate was at a record low in ten states in October, according to data released by the Bureau of Labor Statistics. In Arkansas (3.5 percent), California (4.1 percent), Idaho (2.7 percent), Iowa (2.4 percent), Missouri (3.1 percent), New York (4.0 percent), Oregon (3.8 percent), South Carolina (3.3 percent), Texas (3.7 percent) and Washington (4.3 percent) the statewide unemployment rate was at their lowest levels ever recorded, according to BLS.
President Donald J. Trump (R) is crediting his administration for the positive economic results.