Personal income decreased $130.1 billion (0.7 percent) in October according to estimates released by the Bureau of Economic Analysis. Disposable personal income (DPI) decreased $134.8 billion (0.8 percent) and personal consumption expenditures (PCE) increased $70.9 billion (0.5 percent).
Real DPI decreased 0.8 percent in October and Real PCE increased 0.5 percent. The PCE price index was unchanged from September. The PCE price index excluding food and energy was also unchanged.
The decrease in personal income in October was led by a decrease in government social benefits (table 3). Within government social benefits, “other” social benefits decreased which primarily reflected a decrease in Lost Wages Supplemental Payments, a Federal Emergency Management Agency program that provides wage assistance to individuals impacted by the pandemic.
Offsetting the decrease in government social benefits were increases in compensation and proprietors’ income (led by farm). Within compensation, an increase in private wages and salaries was partly offset by a decrease in government wages and salaries, which decreased $8.4 billion in October, following a decrease of $8.2 billion in September and an increase of $22.8 billion in August. Temporary and intermittent decennial Census workers boosted government wages by $3.7 billion in October after adding $9.3 billion in September and $10.9 billion in August. Within farm proprietors’ income, there was an increase in payments under the Coronavirus Food Assistance Program related to supporting farmers and ranchers impacted by COVID-19.
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