Americans Spend More and Earn Less in October
Personal income in the United States (money earned from wages and salaries) decreased by 0.1 percent on the month in October, according to data released by the Bureau of Economic Analysis and the Commerce Department on Friday. Disposable personal income (what’s left after taxes) decreased by 0.2 percent on the month. September’s data were not revised from gains of 0.5 percent in both categories.
Economists were expecting personal income to climb 0.3 percent on the month, a deceleration from September’s strong gain but still more optimistic than the actual data. The decline in personal income was the first since January and appears to reflect income lost as a result of the 16-day partial government shutdown.
The decline in disposable personal income can also be attributed to an increase in personal current taxes, which increased $12.8 billion in October compared to a $2.3 billion increase in September. Total disposable personal income declined by $23.6 billion for October compared to a $62.1 billion increase in the previous month.