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Personal Consumption Expenditure: Difference between revisions
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=== January 2023 === | === January 2023 === | ||
US Commerce department announced that the core personal consumption expenditure rose 0.6% in January and 4.7% year-over-year. This was above the wall street expectations for a 0.5% rise in the month and 4.4% year-over-year increase. Headline Personal Consumption Expenditure rose 0.6% and 5.4%, respectively. Similarly, consumer spending rose 1.8% in January versus 1.4% estimate while Personal income rose 1.4%, higher than the 1.2% estimate. These numbers indicate that inflation remained sticky at the start of the new year. The rise mostly came from energy prices which rose 2% in January. Food prices increased 0.4% while goods and services both rose 0.6%.<ref>https://www.cnbc.com/2023/02/24/key-fed-inflation-measure-rose-0point6percent-in-january-more-than-expected.html</ref> It is believed that the "Spending was likely driven by a 8.7% cost of living adjustment, the biggest increase since 1981, for more than 65 million Social Security beneficiaries, which boosted income."<ref>https://www.reuters.com/markets/us/us-inflation-accelerates-january-consumer-spending-surges-2023-02-24/</ref> | US Commerce department announced that the core personal consumption expenditure rose 0.6% in January and 4.7% year-over-year. This was above the wall street expectations for a 0.5% rise in the month and 4.4% year-over-year increase. Headline Personal Consumption Expenditure rose 0.6% and 5.4%, respectively. Similarly, consumer spending rose 1.8% in January versus 1.4% estimate while Personal income rose 1.4%, higher than the 1.2% estimate. These numbers indicate that inflation remained sticky at the start of the new year. The rise mostly came from energy prices which rose 2% in January. Food prices increased 0.4% while goods and services both rose 0.6%.<ref>https://www.cnbc.com/2023/02/24/key-fed-inflation-measure-rose-0point6percent-in-january-more-than-expected.html</ref> It is believed that the "Spending was likely driven by a 8.7% cost of living adjustment, the biggest increase since 1981, for more than 65 million Social Security beneficiaries, which boosted income."<ref>https://www.reuters.com/markets/us/us-inflation-accelerates-january-consumer-spending-surges-2023-02-24/</ref> | ||
* The increase in personal income primarily reflected an increase in compensation. The increase reflected increases of $78.0 billion in services-producing industries and $22.0 billion in goods-producing industries.<ref>https://www.bea.gov/sites/default/files/2023-02/pi0123_fax.pdf</ref> | |||
* The increase in personal income primarily reflected an increase in compensation. The increase reflected increases of $78.0 billion in services-producing industries and $22.0 billion in goods-producing industries. | |||
* Within goods, the largest contributors to the increase were motor vehicles and parts (led by new light trucks), based on unit sales and “other” nondurable goods (led by pharmaceutical products and recreational items) | * Within goods, the largest contributors to the increase were motor vehicles and parts (led by new light trucks), based on unit sales and “other” nondurable goods (led by pharmaceutical products and recreational items) | ||
* Within services, the largest contributor to the increase was food services and accommodations (led by purchased meals and beverages) | * Within services, the largest contributor to the increase was food services and accommodations (led by purchased meals and beverages) | ||
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Personal income rose 0.3% versus 0.2% estimate while Consumer spending rose 0.2% versus 0.3% estimate<ref>https://www.cnbc.com/2023/03/31/fed-inflation-gauge-february-2023-.html#:~:text=Key%20Fed%20inflation%20gauge%20rose%200.3%25%20in%20February%2C%20less%20than%20expected,-Published%20Fri%2C%20Mar&text=The%20personal%20consumption%20expenditures%20price,This%20is%20breaking%20news.</ref>. | Personal income rose 0.3% versus 0.2% estimate while Consumer spending rose 0.2% versus 0.3% estimate<ref>https://www.cnbc.com/2023/03/31/fed-inflation-gauge-february-2023-.html#:~:text=Key%20Fed%20inflation%20gauge%20rose%200.3%25%20in%20February%2C%20less%20than%20expected,-Published%20Fri%2C%20Mar&text=The%20personal%20consumption%20expenditures%20price,This%20is%20breaking%20news.</ref>. | ||
* Personal income increased, primarily reflecting an increase in compensation | * Personal income increased, primarily reflecting an increase in compensation | ||
* The personal saving rate was 4.6 percent in February, compared with 4.4 percent in January. | * The personal saving rate was 4.6 percent in February, compared with 4.4 percent in January. | ||