October 2011 Personal Income and Outlays, Retail Sales and Consumer Debt

Click image for larger view

Bureau of Economic Analysis data showed that personal income increased $48.1 billion (0.4 percent) and disposable personal income (DPI) increased $30.2 billion (0.3 percent) in October. Personal consumption expenditures (PCE) increased $8.2 billion (0.1 percent). Real (inflation-adjusted) DPI increased 0.3 percent while real PCE rose by 0.1 percent.
 

Click image for larger view

With DPI increasing faster than PCE, the personal saving rate rose to 3.5 percent, well off the recent peak of 5.0 percent seen in June. Despite the October increase, the three-month average saving rate pictured above dropped to 3.6 percent.
 

Click image for larger view

Click image for larger view

Consumers ramped up spending on retail goods in October, by 0.5 percent. The “other” category saw the biggest jump ($1.7 billion or 0.6 percent), driven largely – according to Goldman Sachs – by the introduction of Apple’s latest iPhone.
 

Click image for larger view

Total consumer debt outstanding increased in October, rising by a seasonally adjusted and annualized rate of 3.7 percent. The increase was broad-based; only commercial banks and finance companies saw a decline.