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Report: Expenditures outpace personal income growth in October

Report: Expenditures outpace personal income growth in October
A man shops at a Target store in Fairfax, Va. on August 14, 2009. A new Commerce Department report said personal expenditures outpaced personal incomes in October. File Photo by Alexis C. Glenn/UPI | License Photo

Nov. 24 (UPI) -- Personal incomes increased 0.5% over the past month, but personal consumption expenditures continued to outpace those raises, with a jump of 1.3% over the same period, the Commerce Department said in a report Wednesday.

The figures highlighted the increasing pressure inflation is playing on the economy. The Personal Consumption Expenditures Index, which excludes volatile food and energy prices and is a key figure watched by federal regulators, increased by 4.1% over the past 12 months.

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The report said real disposable personal income decreased in October by 0.3%, while real personal consumption expenditures increased 0.7%.

Personal income grew by $93.4 billion in October at the same time personal consumption expenditures grew by $214.3 billion.

While it can't exactly be factored in, the report said the continued coronavirus pandemic remains a factor in the economy.

"The estimate for October personal income and outlays reflected the continued economic impacts related to the COVID-19 pandemic," the report said. "In October, payments for pandemic-related unemployment benefits decreased.

"The full economic effects of the COVID-19 pandemic cannot be quantified in the personal income and outlays estimate because the impacts are generally embedded in source data and cannot be separately identified."

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