Personal Income and Outlays, December 2022

Personal income increased $49.5 billion (0.2 percent) in December, according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $49.2 billion (0.3 percent) and personal consumption expenditures (PCE) decreased $41.6 billion (0.2 percent).

The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.3 percent (table 9). Real DPI increased 0.2 percent in December and Real PCE decreased 0.3 percent; goods decreased 0.9 percent and services were unchanged (tables 5 and 7).

2022

Aug.Sept.Oct.Nov.Dec.

Percent change from preceding month

Personal income:

Current dollars0.40.40.80.30.2

Disposable personal income:

Current dollars0.40.40.90.30.3

Chained (2012) dollars0.10.00.50.20.2

Personal consumption expenditures (PCE):

Current dollars0.70.60.8-0.1-0.2

Chained (2012) dollars0.50.30.4-0.2-0.3

Price indexes:

PCE0.30.3 0.40.10.1

PCE, excluding food and energy0.60.50.30.20.3

Price indexes:Percent change from month one year ago

PCE6.36.36.15.5 5.0

PCE, excluding food and energy4.95.25.14.74.4

The increase in current-dollar personal income in December primarily reflected increases in compensation and proprietors' income (table 3). The increase in compensation reflected increases in private wages and salaries in both services-producing industries and goods-producing industries. The increase in proprietors' income reflected an increase in nonfarm income that was partly offset by a decrease in farm income.

The $41.6 billion decrease in current-dollar PCE in December reflected a decrease of $95.0 billion in spending for goods and a $53.4 billion increase in spending for services (table 3). Within goods, decreases were widespread and led by gasoline as well as motor vehicles and parts. Within services, the largest contributors to the increase were spending for housing, transportation (mainly air transportation), and health care. Detailed information on monthly PCE spending can be found on Table 2.3.5U.

Personal outlays decreased $39.2 billion in December (table 3). Personal saving was $637.5 billion in December and the personal saving rate—personal saving as a percentage of disposable personal income—was 3.4 percent (table 1).

Prices

From the preceding month, the PCE price index for December increased 0.1 percent (table 9). Prices for goods decreased 0.7 percent and prices for services increased 0.5 percent. Food prices increased 0.2 percent and energy prices decreased 5.1 percent. Excluding food and energy, the PCE price index increased 0.3 percent. Detailed monthly PCE price indexes can be found on Table 2.3.4U.

From the same month one year ago, the PCE price index for December increased 5.0 percent (table 11). Prices for goods increased 4.6 percent and prices for services increased 5.2 percent. Food prices increased 11.2 percent and energy prices increased 6.9 percent. Excluding food and energy, the PCE price index increased 4.4 percent from one year ago.

Real PCE

In December, real PCE decreased 0.3 percent, reflecting a decrease of 0.9 percent in spending on goods; spending on services was unchanged (table 7). Within goods, a decrease in motor vehicles and parts was partly offset by an increase in gasoline. Within services, increases in health care as well as housing and utilities (mainly natural gas) were offset by decreases in food services and accommodations as well as financial services and insurance. Detailed information on monthly real PCE spending can be found on Table 2.3.6U.

Updates to Personal Income and Outlays

Estimates have been updated for October and November. Revised and previously published changes from the preceding month for current-dollar personal income, and for current-dollar and chained (2012) dollar DPI and PCE, are provided below.

Change from preceding month

October November

PreviousRevisedPreviousRevisedPreviousRevisedPreviousRevised

(Billions of dollars)(Percent)(Billions of dollars)(Percent)

Personal income:

Current dollars149.4175.60.70.880.156.60.40.3

Disposable personal income:

Current dollars135.4172.90.70.968.660.60.40.3

Chained (2012) dollars52.882.10.40.539.233.80.30.2

Personal consumption expenditures:

Current dollars151.5141.10.90.819.8-19.10.1-0.1

Chained (2012) dollars68.859.70.50.40.9-29.30.0-0.2