According to the most recent data from the Bureau of Economic Analysis, personal Income rose by 0.6% in October to a seasonally adjusted annual rate of $16,260 billion. This is the largest growth within the past six months. Personal consumption expenditures edged up by 0.3%, following an upwardly revised 0.7% gain in September. On a year-over-year comparison, personal consumption jumped 4.2% in October, the biggest gain since January 2015.
Disposable personal income – income remaining after deducting personal income taxes – continued its steady growth. In October, disposable personal income was 2.7% higher than a year ago.
In October, 6.0% of disposable income went to personal savings, slightly up from 5.7% in September. The savings rate rose with the onset of the Great Recession as households repaired their balance sheets. However, this process of deleveraging held back GDP growth due to reduced consumption.