The most recent data release from the Bureau of Economic Analysis (BEA) showed that personal income slumped 1% in September to a seasonally adjusted annual rate (SAAR) of $20,490 billion. This decrease in personal income was largely due to declines in the government social benefits, including economic impact payments and the pandemic unemployment compensation. It largely offset the increase in the compensation of employees.

Real disposable income (income remaining after adjusting for taxes and inflation) declined 1.6% in September, after a 0.2% dip in August. Personal consumption expenditures (PCE) was up for three consecutive months in the third quarter of 2021: up 0.1% in July, 1.0% in August and 0.6% in September.

The personal savings rate slipped further to 7.5%, as people spent more in September. The personal savings rate has declined from a record high rate of 33.8% in April 2020. With the decline in personal income and increase in consumption expenditure, savings slipped to an annual pace of $1.3 billion.