Real Disposable Income or Personal Income After Tax and Inflation Increasing 0.1 Percent in Nov 2025 and increasing 1.0 Percent in 12 Months, Prices of Personal Consumption Expenditures Increasing 2.8 Percent in 12 Months Ending in Nov 2025, Prices of Personal Consumption Expenditures Excluding Food and Energy Increasing 2.8 Percent in 12 Months Ending in Nov 2025, Cyclically Stagnating Real Disposable Income and Consumption Expenditures, Financial Repression, Stagflation, Worldwide Fiscal, Monetary and External Imbalances, Risk of Global Recession, World Cyclical Slow Growth, Government Intervention in Globalization, US Government Shutdown

 

 

I Real Disposable Income

IA Mediocre Cyclical United States Economic Growth

IA1 Stagnating Real Private Fixed Investment

IID United States International Terms of Trade

I United States Industrial Production

I United States Inflation

II Long-term United States Inflation

III Current United States Inflation

IV Global Inflation

V World Economic Slowdown

VA United States

VB Japan

VC China

VD Euro Area

VE Germany

VF France

VG Italy

VH United Kingdom

VI Valuation of Risk Financial Assets

VII Economic Indicators

VIII Interest Rates

IX Conclusion

References

Appendixes

Appendix I The Great Inflation

IIIB Appendix on Safe Haven Currencies

IIIC Appendix on Fiscal Compact

IIID Appendix on European Central Bank Large Scale Lender of Last Resort

IIIG Appendix on Deficit Financing of Growth and the Debt Crisis

IV Global Inflation

V World Economic Slowdown

VA United States

VB Japan

VC China

VD Euro Area

VE Germany

VF France

VG Italy

VH United Kingdom

VI Valuation of Risk Financial Assets

VII Economic Indicators

VIII Interest Rates

IX Conclusion

References

Appendixes

Appendix I The Great Inflation

IIIB Appendix on Safe Haven Currencies

IIIC Appendix on Fiscal Compact

IIID Appendix on European Central Bank Large Scale Lender of Last Resort

IIIG Appendix on Deficit Financing of Growth and the Debt Crisis

 

© Carlos M. Pelaez, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026.

 

Note: This Blog will post only one indicator of the US economy while we concentrate efforts in completing a book-length manuscript in the critically important subject of INFLATION.

 

Preamble. United States total public debt outstanding is $38.6 trillion and debt held by the public $31.0 trillion (https://fiscaldata.treasury.gov/datasets/debt-to-the-penny/debt-to-the-penny) [Date last updated Feb 11, 2026.] The Federal Reserve Bank of Saint Louis estimates Federal Total Public Debt as percent of GDP at 121.0 in IIIQ2025 and Federal Total Public Debt Held by the Public at 95.0 Percent of GDP (https://fred.stlouisfed.org/series/GFDEGDQ188S). [Shutdown affects data: https://news.research.stlouisfed.org/2025/09/a-u-s-government-shutdown-could-delay-some-fred-data-2/] The Net International Investment Position of the United States, or foreign debt, is $27.61 trillion at the end of IIIQ2025 (https://www.bea.gov/sites/default/files/2026-01/intinv325.pdf) [Shutdown affects data]. The United States current account deficit is 2.9 percent of nominal GDP in IIIQ2025, “down from 3.3 percent in the second quarter” (https://www.bea.gov/sites/default/files/2026-01/trans325.pdf) (Next release Jan 14, 2026) [Shutdown affects data]. The Treasury deficit of the United States reached $1.8 trillion in fiscal year 2024 (https://fiscal.treasury.gov/reports-statements/mts/). Total assets of Federal Reserve Banks reached $6.6 trillion on Feb 11, 2026 and securities held outright reached $6.3 trillion (https://www.federalreserve.gov/releases/h41/current/h41.htm#h41tab1). US GDP nominal NSA reached $31.1 trillion in IIIQ2025 (https://apps.bea.gov/iTable/index_nipa.cfm). US GDP contracted at the real seasonally adjusted annual rate (SAAR) of 1.0 percent in IQ2022 and grew at the SAAR of 0.6 percent in IIQ2022, growing at 2.9 percent in IIIQ2022, growing at 2.8 percent in IVQ2022, growing at 2.9 percent in IQ2023, growing at 2.5 percent in IIQ2023 growing at 4.7 percent in IIIQ2023, growing at 3.4 percent in IVQ2023, growing at 0.8 percent in IQ2024, growing at 3.6 percent in IIQ2024, growing at 3.3 percent in IIIQ2024, growing at 1.9 percent in IVQ2024, contracting at 0.6 percent in IQ2025, growing at 3.8 percent in IIQ2025 and growing at 4.4 percent in IIIQ2025 (https://apps.bea.gov/iTable/index_nipa.cfm). [Shutdown affects data] Total Treasury interest-bearing, marketable debt held by private investors increased from $3635 billion in 2007 to $16,439 billion in Sep 2021 (Fiscal Year 2021) or increase by 352.2 percent (https://fiscal.treasury.gov/reports-statements/treasury-bulletin/). John Hilsenrath, writing on “Economists Seek Recession Cues in the Yield Curve,” published in the Wall Street Journal on Apr 2, 2022, analyzes the inversion of the Treasury yield curve with the two-year yield at 2.430 on Apr 1, 2022, above the ten-year yield at 2.374. Hilsenrath argues that inversion appears to signal recession in market analysis but not in alternative Fed approach.

The Consumer Price index of the United States in Chart CPI-H increased 2.7 percent in Dec 2025 Relative to a Year Earlier, The Tenth Highest Since 8.9 percent in Dec 1981 was Followed by the Highest of 9.1 percent in Jun 2022, the Second Highest of 8.6 percent in May 2022, 8.5 percent in both Jul 2022 and Mar 2022, 8.3 percent in both Apr and Aug 2022, 8.2 percent in Sep 2022, 7.9 percent in February 2022, 7.5 percent in Jan 2022, 7.7 percent in Oct 2022, 7.1 percent in Nov 2022, 6.5 percent in Dec 2022, 6.4 percent in Jan 2023, 6.0 percent in Feb 2023, 5.0 percent in Mar 2023, 4.9 percent in Apr 2023, 4.0 percent in May 2023, 3.0 percent in Jun 2023, 3.2 percent in Jul 2023, 3.7 percent in Aug 2023, 3.7 percent in Sep 2023, 3.2 percent in Oct 2023, 3.1 percent in Nov 2023, 3.4 percent in Dec 2023, 3.1 percent in Jan 2024, 3.2 percent in Feb 2024, 3.5 percent in Mar 2024, 3.4 percent in Apr 2024, 3.3 percent in May 2024, 3.0 in Jun 2024, 2.9 percent in Jul 2024, 2.5 percent in Aug 2024, 2.4 percent in Sep 2024, 2.6 percent in Oct 2024, 2.7 percent in Nov 2024, 2.9 percent in Dec 2024, 3.0 percent in Jan 2025, 2.8 percent in Feb 2025, 2.4 percent in Mar 2025, 2.3 percent in Apr 2025, 2.4 percent in May 2025, 2.7 percent in Jun 2025, 2.7 percent in Jul 2025, 2.9 percent in Aug 2025, 3.0 percent in Sep 2025, no observations available (NA) for Oct 2025 during the shutdown, 2.7 percent in Nov 2025 and 2.7 percent in Dec 2025.

 

Chart CPI-H, US, Consumer Price Index, 12-Month Percentage Change, NSA, 1981-2025

Source: US Bureau of Labor Statistics https://www.bls.gov/cpi/data.htm

 

Table CPI-H, US, Consumer Price Index, 12-Month Percentage Change, NSA,

 1981-1983, 2019-2025

Year	Jan	Feb	Mar	Apr	May	Jun
1981	11.8	11.4	10.5	10.0	9.8	9.6
1982	8.4	7.6	6.8	6.5	6.7	7.1
1983	3.7	3.5	3.6	3.9	3.5	2.6
2019	1.6	1.5	1.9	2.0	1.8	1.6
2020	2.5	2.3	1.5	0.3	0.1	0.6
2021	1.4	1.7	2.6	4.2	5.0	5.4
2022	7.5	7.9	8.5	8.3	8.6	9.1
2023	6.4	6.0	5.0	4.9	4.0	3.0
2024	3.1	3.2	3.5	3.4	3.3	3.0
2025	3.0	2.8	2.4	2.3	2.4	2.7
Year	Jul	Aug	Sep	Oct	Nov	Dec
1981	10.8	10.8	11.0	10.1	9.6	8.9
1982	6.4	5.9	5.0	5.1	4.6	3.8
1983	2.5	2.6	2.9	2.9	3.3	3.8
2019	1.8	1.7	1.7	1.8	2.1	2.3
2020	1.0	1.3	1.4	1.2	1.2	1.4
2021	5.4	5.3	5.4	6.2	6.8	7.0
2022	8.5	8.3	8.2	7.7	7.1	6.5
2023	3.2	3.7	3.7	3.2	3.1	3.4
2024	2.9	2.5	2.4	2.6	2.7	2.9
2025	2.7	2.9	3.0		2.7	2.7

Note: NA because of interruption of appropriations.

Source: US Bureau of Labor Statistics https://www.bls.gov/cpi/data.htm

 

 

Chart VII-3 of the Energy Information Administration provides the US retail price of regular gasoline. The price moved to $2.902 per gallon on Feb 9, 2026, from $3.128 a year earlier or minus 7.2 percent.

https://www.eia.gov/petroleum/weekly/ [Chart discontinued See Weekly Petroleum Status Report.]

Chart VII-3A provides the US retail price of regular gasoline, dollars per gallon, from $1.191 on Aug 20,1990 to $2.902 on Feb 9, 2026 or 143.7 percent. The price of retail regular gasoline increased from $2.249/gallon on Jan 4,2021 to $2.902/gallon on Feb 9, 2026, or 29.0 percent. The price of retail regular gasoline decreased from $3.530/gallon on Feb 21, 2022, two days before the invasion of Ukraine, to $2.902/gallon on Feb 9, 2026 or minus 17.8 percent and had increased 57.0 percent from $2.249/gallon on Jan 4,2021 to $3.530/gallon on Feb 28, 2022.

Chart VII-3A, US Retail Price of Regular Gasoline, Dollars Per Gallon

Source: US Energy Information Administration

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPMR_PTE_NUS_DPG&f=W 

Chart VII-4 of the Energy Information Administration provides the price of the Natural Gas Futures Contract increasing from $2.581 per million Btu on Jan 4, 2021 to $5.326 per million Btu on Dec 20, 2022 or 106.4 percent and closing at $1.785 on Apr 5, 2024 or change of minus 66.5 percent.

 

Chart VII-4, US, Natural Gas Futures Contract 1

Source: US Energy Information Administration

https://www.eia.gov/dnav/ng/hist/rngc1d.htm

Chart VII-5 of the US Energy Administration provides US field production of oil moving from a high of 12.983 thousand barrels per day in Dec 2019 to 11.760 thousand barrels per day in Dec 2021 and the final point of 13.782 thousand barrels per day in Nov 2025.

Chart VII-5 United States Field Production of Crude Oil, Thousand Barrels Per Day

Sources: US Energy Information Administration https://www.eia.gov/dnav/pet/hist/leafhandler.ashx?n=pet&s=mcrfpus2&f=m

Chart VII-6 of the US Energy Information Administration provides net imports of crude oil and petroleum products. Net imports changed from 1967 thousand barrels per day in the first week of Dec 2020 to minus -3216 thousand barrels in the fourth week of Oct 25, 2024, minus 3310 thousand barrels in the second week of Dec 13, 2024 and minus 2.288 thousand barrels in the first week of Feb 6, 2026.

Chart VII-6, US, Net Imports of Crude Oil and Petroleum Products, Thousand Barrels Per Day

Source: US Energy Information Administration

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WTTNTUS2&f=W

Chart VI-7 of the EIA provides US Petroleum Consumption, Production, Imports, Exports and Net Imports 1950-2022. There was sharp increase in production in the final segment that reached consumption by 2020. There is reversal in 2021 with consumption exceeding production. 

Chart VI-7, US Petroleum Consumption, Production, Imports, Exports and Net Imports 1950-2022, Million Barrels Per Day

https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php

Chart VI-8 provides the US average retail price of electricity at 12.78 cents per kilowatthour in Dec 2020 increasing to 17.78 cents per kilowatthour in Nov 2025 or 39.1 per cent.

Chart VI-8, US Average Retail Price of Electricity, Monthly, Cents per Kilowatthour

https://www.eia.gov/electricity/data/browser/#/topic/7?agg=0,1&geo=g&endsec=vg&linechart=ELEC.PRICE.US-RES.M~~~&columnchart=ELEC.PRICE.US-ALL.M~ELEC.PRICE.US-RES.M~ELEC.PRICE.US-COM.M~ELEC.PRICE.US-IND.M&map=ELEC.PRICE.US-ALL.M&freq=M&start=200101&end=202205&ctype=linechart&ltype=pin&rtype=s&pin=&rse=0&ma

United States manufacturing output from 1919 to 2025 monthly is in Chart I-4 of the Board of Governors of the Federal Reserve System. The second industrial revolution of Jensen (1993) is quite evident in the acceleration of the rate of growth of output given by the sharper slope in the 1980s and 1990s. Growth was robust after the shallow recession of 2001 but dropped sharply during the global recession after IVQ2007. Manufacturing output recovered sharply but has not reached earlier levels and is losing momentum at the margin.  There is cyclical uncommonly slow growth in the US instead of allegations of secular stagnation. There is similar behavior in manufacturing. There is classic research on analyzing deviations of output from trend (see for example Schumpeter 1939, Hicks 1950, Lucas 1975, Sargent and Sims 1977). The long-term trend is growth of manufacturing at average 2.8 percent per year from Dec 1919 to Dec 2025. Growth at 2.8 percent per year would raise the NSA index of manufacturing output (SIC, Standard Industrial Classification) from 106.8904 in Dec 2007 to 175.7174 in Dec 2025. The actual index NSA in Dec 2025 is 95.9328 which is 45.4 percent below trend. The underperformance of manufacturing in Mar-Nov 2020 originates partly in the earlier global recession augmented by the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021).  Manufacturing output grew at average 1.5 percent between Dec 1999 and Dec 2006. Using trend growth of 1.5 percent per year, the index would increase to 139.7422 in May 2025. The output of manufacturing at 95.9328 in Dec 2025 is 31.4 percent below trend under this alternative calculation. Using the NAICS (North American Industry Classification System), manufacturing output fell from the high of 108.5201 in Jun 2007 to the low of 84.8006 in Apr 2009 or 21.9 percent. The NAICS manufacturing index increased from 84.8006 in Apr 2009 to 95.6977 in Dec 2025 or 12.9 percent. The NAICS manufacturing index increased at the annual equivalent rate of 3.5 percent from Dec 1986 to Dec 2006. Growth at 3.5 percent would increase the NAICS manufacturing output index from 104.8218 in Dec 2007 to 194.7054 in Dec 2025. The NAICS index at 96.6977 in Jun 2025 is 50.3 percent below trend. The NAICS manufacturing output index grew at 1.7 percent annual equivalent from Dec 1999 to Dec 2006. Growth at 1.7 percent would raise the NAICS manufacturing output index from 104.8218 in Dec 2007 to 141.9805 in Dec 2025. The NAICS index at 96.6977 in Dec 2025 is 31.9 percent below trend under this alternative calculation.

Chart I-4, US, Manufacturing Output, 1919-2025

Source: Board of Governors of the Federal Reserve System

https://www.federalreserve.gov/releases/g17/Current/default.htm

Chart I-4B provides the data for the period 2007-2025 SIC US Manufacturing. There has not been recovery from the higher levels before the recession from Dec 2007 to Aug 2009 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions).

Chart I-7 of the Board of Governors of the Federal Reserve System shows that output of durable manufacturing accelerated in the 1980s and 1990s with slower growth in the 2000s perhaps because processes matured. Growth was robust after the major drop during the global recession but appears to vacillate in the final segment. There is sharp contraction in Mar-Apr 2020 in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021). There is initial recovery in May 2020-Oct 2022 with deterioration/weakness and renewed oscillating growth in Nov 2022-Dec 2025.

Chart I-4B, US, Manufacturing Output, 2007-2025

htps://www.federalreserve.gov/releases/g17/Current/default.htm

Chart I-7 of the Board of Governors of the Federal Reserve System shows that output of durable manufacturing accelerated in the 1980s and 1990s with slower growth in the 2000s perhaps because processes matured. Growth was robust after the major drop during the global recession but appears to vacillate in the final segment. There is sharp contraction in Mar-Apr 2020 in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021). There is initial recovery in May 2020-Oct 2022 with deterioration/weakness and renewed oscillating growth in Nov 2022-Dec 2025.

Chart I-7, US, Output of Durable Manufacturing, 2007-2025

Source: Board of Governors of the Federal Reserve System

htps://www.federalreserve.gov/releases/g17/Current/default.htm

Chart I-7B provides NAICS Durable Manufacturing from 2007 to 2025. There has not been recovery from the higher levels before the recession from Dec 2007 to Dec 2009 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions).

Chart I-7B, US, Output of Durable Manufacturing, 2007-2025

Source: Board of Governors of the Federal Reserve System

htps://www.federalreserve.gov/releases/g17/Current/default.htm

Chart V-3D provides the index of US manufacturing (NAICS) from Jan 1972 to Dec 2025. The index continued increasing during the decline of manufacturing jobs after the early 1980s. There are likely effects of changes in the composition of manufacturing with also changes in productivity and trade. There is sharp decline in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021).

Chart V-3D, United States Manufacturing (NAICS) NSA, Jan 1972 to Dec 2025

Source: Board of Governors of the Federal Reserve System

https://www.federalreserve.gov/releases/g17/Current/default.htmh

Chart V-3DB provides NAICS Manufacturing from 2007 to 2025. There has not been recovery from the higher levels before the recession from Dec 2007 to Nov 2009 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions).

Chart V-3DB, United States Manufacturing (NAICS) NSA, Jan 2007 to Dec 2025

Source: Board of Governors of the Federal Reserve System

https://www.federalreserve.gov/releases/g17/Current/default.htm

Chart VII-9 provides the fed funds rate and Three Months, Two-Year and Ten-Year Treasury Constant Maturity Yields. Unconventional monetary policy of near zero interest rates is typically followed by financial and economic stress with sharp increases in interest rates.

Chart VII-9, US Fed Funds Rate and Three-Month, Two-Year and Ten-Year Treasury Constant Maturity Yields, Jan 2, 1994 to 2022-2023

Source: Federal Reserve Board of the Federal Reserve System

https://www.federalreserve.gov/releases/h15/

            Note: program does not download the entire right-side of the chart.

Chart VII-9A, US Fed Funds Rate and Three-Month, Two-Year and Ten-Year Treasury Constant Maturity Yields, Jan 2, 2022 to May 30, 2023

Source: Federal Reserve Board of the Federal Reserve System

https://www.federalreserve.gov/releases/h15/

Note: Chart is shortened of current dates in download.

Chart VI-14 provides the overnight fed funds rate, the yield of the 10-year Treasury constant maturity bond, the yield of the 30-year constant maturity bond and the conventional mortgage rate from Jan 1991 to Dec 1996. In Jan 1991, the fed funds rate was 6.91 percent, the 10-year Treasury yield 8.09 percent, the 30-year Treasury yield 8.27 percent and the conventional mortgage rate 9.64 percent. Before monetary policy tightening in Oct 1993, the rates and yields were 2.99 percent for the fed funds, 5.33 percent for the 10-year Treasury, 5.94 for the 30-year Treasury and 6.83 percent for the conventional mortgage rate. After tightening in Nov 1994, the rates and yields were 5.29 percent for the fed funds rate, 7.96 percent for the 10-year Treasury, 8.08 percent for the 30-year Treasury and 9.17 percent for the conventional mortgage rate.

Chart VI-14, US, Overnight Fed Funds Rate, 10-Year Treasury Constant Maturity, 30-Year Treasury Constant Maturity and Conventional Mortgage Rate, Monthly, Jan 1991 to Dec 1996

Source: Board of Governors of the Federal Reserve System

http://www.federalreserve.gov/releases/h15/update/

Chart VI-15 of the Bureau of Labor Statistics provides the all items consumer price index from Jan 1991 to Dec 1996. There does not appear acceleration of consumer prices requiring aggressive tightening.

Chart VI-15, US, Consumer Price Index All Items, Jan 1991 to Dec 1996

Source: Bureau of Labor Statistics

https://www.bls.gov/cpi/data.htm

Chart IV-16 of the Bureau of Labor Statistics provides 12-month percentage changes of the all items consumer price index from Jan 1991 to Dec 1996. Inflation collapsed during the recession from Jul 1990 (III) and Mar 1991 (I) and the end of the Kuwait War on Feb 25, 1991 that stabilized world oil markets. CPI inflation remained almost the same and there is no valid counterfactual that inflation would have been higher without monetary policy tightening because of the long lag in effect of monetary policy on inflation (see Culbertson 1960, 1961, Friedman 1961, Batini and Nelson 2002, Romer and Romer 2004). Policy tightening had adverse collateral effects in the form of emerging market crises in Mexico and Argentina and fixed income markets worldwide.

Chart VI-16, US, Consumer Price Index All Items, Twelve-Month Percentage Change, Jan 1991 to Dec 1996

Source: Bureau of Labor Statistics

https://www.bls.gov/cpi/data.htm

 

Chart USFX provides the exchange rate of US Dollars per EURO from 2007 to 2023. Barry Eichengreen and Jeffrey Sachs, Exchange Rates and Economic Recovery in the 1930s, The Journal of Economic History, Vol. 45, No. 4 (Dec 1985), argue that foreign exchange “depreciation was clearly beneficial for initiating countries” during the Great Depression of the 1930s and that it was no equivalent to “beggar my neighbor” policies such as tariffs.

\

Chart USFX, Exchange Rate USD/EURO 2007-2023

Source: https://www.federalreserve.gov/releases/h10/current/

Chart USFX, Exchange Rate USD/EURO 2000-2023

Source: https://www.federalreserve.gov/releases/h10/current/

Federal Reserve Bank of St. Louis https://fred.stlouisfed.org/

Chart USFX, Exchange Rate USD/EURO 2018-2023

Source: https://www.federalreserve.gov/releases/h10/current/

Federal Reserve Bank of St. Louis https://fred.stlouisfed.org/

Table USFX provides the rate of USD/EURO in selected months. The dollar appreciated sharply from USD 1.2254 on Jan 4, 2021 to 1.0787 on Aug 25, 2023 and 1.1812 on Feb 6, 2026.

Table USFX, USD/EURO Selected Months

Date	USD/EUR
1/4/2021	1.2254
1/5/2021	1.2295
1/6/2021	1.229
1/7/2021	1.2265
1/8/2021	1.2252
1/11/2021	1.2169
1/12/2021	1.2168
1/13/2021	1.2159
1/14/2021	1.2156
1/15/2021	1.2099
1/31/2023	1.0858
2/1/2023	1.0917
2/2/2023	1.0918
2/3/2023	1.0825
2/6/2023	1.0722
2/7/2023	1.0705
2/8/2023	1.0734
2/9/2023	1.0761
2/10/2023	1.0670
2/13/2023	1.0718
2/14/2023	1.0722
2/15/2023	1.0683
2/16/2023	1.0684
2/17/2023	1.0678
2/24/2023	1.0545
3/03/2023	1.0616
3/10/2023	1.0659
3/17/2023	1.0647
3/24/2023	1.0762
3/31/2023	1.0872
4/7/2023	1.0913
4/14/2023	1.0980
4/21/2023	1.0973
4/28/2023	1.1040
5/5/2023	1.1026
5/26/2023	1.0713
6/2/2023	1.0724
6/9/2023	1.0749
6/16/2023	1.0925
6/23/2023	1.0887
6/30/2023	1.0920
7/7/2023	1.0964
7/14/2023	1.1237
7/21/2023	1.1120
7/28/2023	1.1039
8/4/2023	1.1036
8/11/2023	1.0957
8/18/2023	1.0875
8/25/2023	1.0787
9/1/223	1.0787
9/8/2023	1.0709
9/15/2023	1.0673
9/22/2023	1.0660
9/29/2023	1.0584
10/6/2023	1.0596
10/13/2023	1.0502
10/20/2023	1.0592
10/27/2023	1.0592
11/3/2023	1.0733
11/10/2023	1.0710
11/17/2023	1.0879
11/24/2023	1.0934
12/1/2023	1.0878
12/8/2023	1.0746
12/15/2023	1.0906
6/21/2024	1.0694
2/7/2025	1.0329
2/6/2026	1.1812

Source: https://www.federalreserve.gov/releases/h10/current/

U.S. International Trade in Goods and Services, November 2025

November 2025	-$56.8 B
October 2025	-$29.2 B

The U.S. goods and services trade deficit increased in November 2025 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $29.2 billion in October (revised) to $56.8 billion in November, as exports decreased and imports increased. The goods deficit increased $27.9 billion in November to $86.9 billion. The services surplus increased $0.3 billion in November to $30.1 billion.

• Current release: January 29, 2026
• Next release: February 19, 2026

Source: https://www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services   [Data are not being updated during shutdown.]

A comprehensive analysis of the Mill-Bickerdike theorem and the Lerner theorem on tariffs and international terms of trade with application to the Brazilian coffee support program, the recovery of Brazil from the Great Depression and Brazil’s industrialization is in Carlos Manuel Pelaez, História da Industrialização Brasileira. Rio de Janeiro, APEC Editora, 1972.

Chart IID-1B provides the US terms of trade index, index of terms of trade of nonpetroleum goods and index of terms of trade of goods with the new base of 2017. The terms of trade of nonpetroleum goods dropped sharply from the mid-1980s to 1995, recovering significantly until 2014, dropping and then recovering again into 2021. There is relative stability in the terms of trade of nonpetroleum goods from 1967 to 2025 but sharp deterioration in the overall index and the index of goods.

 

Chart IID-1B, United States Terms of Trade Indexes 1967-2025, Quarterly

Source: Bureau of Economic Analysis

https://apps.bea.gov/iTable/index_nipa.cfm

[Data are not being updated during shutdown.]

Percentage shares of net trade (exports less imports), exports and imports in US Gross Domestic Product are in Chart IA1-14 from 1979 to 2025. There is sharp trend of decline of exports and imports after the global recession beginning in IVQ2007. Net trade has been subtracting from growth since the stagflation of the 1970s.

 

 

Chart IA1-14, US, Percentage Shares of Net Trade, Exports and Imports in Gross Domestic Product, Quarterly, 1979-2025

Source: US Bureau of Economic Analysis

https://apps.bea.gov/iTable/index_nipa.cfm

 [Data are not being updated during shutdown.]

Table B provides the exchange rate of Brazil and the trade balance from 1927 to 1939. “Currency depreciation in the 1930s…benefitted the initiating countries…There can be no presumption that depreciation was beggar-thy-neighbor…competitive devaluation taken by a group of countries had they been even more widely adopted and coordinated internationally would have hasted recovery from the Great Depression,” Barry Eichengreen and Jeffrey Sachs, “Exchange Rates and Economic Recovery in the1930s,” Journal of Economic History, Vol. 45, No. 4 (Dec., 1985), pp.925-946.

Table B, Brazil, Exchange Rate and Trade Balance, 1927-1939

Year		Exchange Rate Mil-Réis per £		Trade Balance 1000 Contos
1927		40.6		370.9
1928		40.3		275.3
1929		40.6		332.7
1930		49.4		563.6
1931		62.4		1517.2
1932		48.1		1018.1
1933		52.6		655
1934		59.7		956.2
1935		57.9		248.1
1936		58.4		626.8
1937		56.9		-222.5
1938		57.6		-98.7
1939		71.1		631.9

Source: Carlos Manuel Peláez, Análise Econômica do Programa Brasileiro de Sustentação do Café 1906-1945: Teoria, Política e Medição, Revista Brasileira de Economia, Vol. 25, N 4, Out/Dez 1971, 5-213.

Christina D. Romer argues that growth of the money stock was critical in the recovery of the United States from the Great Depression (Christina D. Romer, What ended the Great Depression? The Journal of Economic History, Volume 52, Number 4, Dec 1992, pp 757-784).

Table C, Brazil, Yearly Percentage Changes of the Money Stock, M1 and M2, Exchange Rate, Terms of Trade, Industrial Production, Real Gross National Product and Real Gross Income Per Capita, 1930-1939

Period	M1	M2	Exchange Rate	Terms of Trade	Industrial Production	Real GNP	Real Gross Income Per Capita
1929/30	-9	-4	22	-34	-5	-1	-10
1930/31	4	1	26	-5	8	-3	-6
1931/32	15	7	-23	8	0	6	2
1932/33	10	4	10	-15	16	10	7
1933/34	5	6	13	5	13	7	5
1934/35	7	8	-3	-28	14	1	-4
1935/36	10	11	1	2	14	12	9
1936/37	10	9	-3	2	7	3	0
1937/38	19	13	1	-11	6	4	-1
1938/39	0	8	23	-12	14	4	2

Source: Carlos Manuel Peláez and Wilson Suzigan, História Monetária do Brasil. Segunda Edição Revisada e Ampliada. Coleção Temas Brasileiros, Universidade de Brasília, 1981.

“In the period of the free coffee market 1857-1906, international coffee prices fluctuated in cycles of increasing amplitude. British export prices decreased at a low average rate, and physical exports of coffee by Brazil increased at the average rate of 2.9 percent per year. The income terms of trade of the coffee economy of Brazil improved at the average compound rate of 4.0 percent per year. But the actual rate must have been much higher because of drastic improvements in the quality of manufactures while the quality of coffee remained relatively constant,” Carlos Manuel Peláez, “The Theory and Reality of Imperialism in the Coffee Economy of Nineteenth-Century Brazil,” The Economic History Review, Second Series, Volume XXIX, No. 2, May 1976. 276-290. See Carlos Manuel Peláez, “A Comparison of Long-Term Monetary Behavior and Institutions in Brazil, Europe and the United States,” The Journal of European Economic History, Volume 5, Number 2, Fall 1976, 439-450, Presented at the Sixth International Congress of Economic History, Section on Monetary Inflation in Historical Perspective, Copenhagen, 22 Aug 1974.

In his classic restatement of the Keynesian demand function in terms of “liquidity preference as behavior toward risk,” James Tobin (http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1981/tobin-bio.html) identifies the risks of low interest rates in terms of portfolio allocation (Tobin 1958, 86):

“The assumption that investors expect on balance no change in the rate of interest has been adopted for the theoretical reasons explained in section 2.6 rather than for reasons of realism. Clearly investors do form expectations of changes in interest rates and differ from each other in their expectations. For the purposes of dynamic theory and of analysis of specific market situations, the theories of sections 2 and 3 are complementary rather than competitive. The formal apparatus of section 3 will serve just as well for a non-zero expected capital gain or loss as for a zero expected value of g. Stickiness of interest rate expectations would mean that the expected value of g is a function of the rate of interest r, going down when r goes down and rising when r goes up. In addition to the rotation of the opportunity locus due to a change in r itself, there would be a further rotation in the same direction due to the accompanying change in the expected capital gain or loss. At low interest rates expectation of capital loss may push the opportunity locus into the negative quadrant, so that the optimal position is clearly no consols, all cash. At the other extreme, expectation of capital gain at high interest rates would increase sharply the slope of the opportunity locus and the frequency of no cash, all consols positions, like that of Figure 3.3. The stickier the investor's expectations, the more sensitive his demand for cash will be to changes in the rate of interest (emphasis added).”

Tobin (1969) provides more elegant, complete analysis of portfolio allocation in a general equilibrium model. The major point is equally clear in a portfolio consisting of only cash balances and a perpetuity or consol. Let g be the capital gain, r the rate of interest on the consol and r^e the expected rate of interest. The rates are expressed as proportions. The price of the consol is the inverse of the interest rate, (1+r^e). Thus, g = [(r/r^e) – 1]. The critical analysis of Tobin is that at extremely low interest rates there is only expectation of interest rate increases, that is, dr^e>0, such that there is expectation of capital losses on the consol, dg<0. Investors move into positions combining only cash and no consols. Valuations of risk financial assets would collapse in reversal of long positions in carry trades with short exposures in a flight to cash. There is no exit from a central bank created liquidity trap without risks of financial crash and another global recession. The net worth of the economy depends on interest rates. In theory, “income is generally defined as the amount a consumer unit could consume (or believe that it could) while maintaining its wealth intact” (Friedman 1957, 10). Income, Y, is a flow that is obtained by applying a rate of return, r, to a stock of wealth, W, or Y = rW (Friedman 1957). According to a subsequent statement: “The basic idea is simply that individuals live for many years and that therefore the appropriate constraint for consumption is the long-run expected yield from wealth r*W. This yield was named permanent income: Y* = r*W” (Darby 1974, 229), where * denotes permanent. The simplified relation of income and wealth can be restated as:

W = Y/r (1)

Equation (1) shows that as r goes to zero, r→0, W grows without bound, W→∞. Unconventional monetary policy lowers interest rates to increase the present value of cash flows derived from projects of firms, creating the impression of long-term increase in net worth. An attempt to reverse unconventional monetary policy necessarily causes increases in interest rates, creating the opposite perception of declining net worth. As r→∞, W = Y/r →0. There is no exit from unconventional monetary policy without increasing interest rates with resulting pain of financial crisis and adverse effects on production, investment and employment.

Inflation and unemployment in the period 1966 to 1985 is analyzed by Cochrane (2011Jan, 23) by means of a Phillips circuit joining points of inflation and unemployment. Chart VI-1B for Brazil in Pelaez (1986, 94-5) was reprinted in The Economist in the issue of Jan 17-23, 1987 as updated by the author. Cochrane (2011Jan, 23) argues that the Phillips circuit shows the weakness in Phillips curve correlation. The explanation is by a shift in aggregate supply, rise in inflation expectations or loss of anchoring. The case of Brazil in Chart VI-1B cannot be explained without taking into account the increase in the fed funds rate that reached 22.36 percent on Jul 22, 1981 (http://www.federalreserve.gov/releases/h15/data.htm) in the Volcker Fed that precipitated the stress on a foreign debt bloated by financing balance of payments deficits with bank loans in the 1970s. The loans were used in projects, many of state-owned enterprises with low present value in long gestation. The combination of the insolvency of the country because of debt higher than its ability of repayment and the huge government deficit with declining revenue as the economy contracted caused adverse expectations on inflation and the economy.  This interpretation is consistent with the case of the 24 emerging market economies analyzed by Reinhart and Rogoff (2010GTD, 4), concluding that “higher debt levels are associated with significantly higher levels of inflation in emerging markets. Median inflation more than doubles (from less than seven percent to 16 percent) as debt rises frm the low (0 to 30 percent) range to above 90 percent. Fiscal dominance is a plausible interpretation of this pattern.”

The reading of the Phillips circuits of the 1970s by Cochrane (2011Jan, 25) is doubtful about the output gap and inflation expectations:

“So, inflation is caused by ‘tightness’ and deflation by ‘slack’ in the economy. This is not just a cause and forecasting variable, it is the cause, because given ‘slack’ we apparently do not have to worry about inflation from other sources, notwithstanding the weak correlation of [Phillips circuits]. These statements [by the Fed] do mention ‘stable inflation expectations. How does the Fed know expectations are ‘stable’ and would not come unglued once people look at deficit numbers? As I read Fed statements, almost all confidence in ‘stable’ or ‘anchored’ expectations comes from the fact that we have experienced a long period of low inflation (adaptive expectations). All these analyses ignore the stagflation experience in the 1970s, in which inflation was high even with ‘slack’ markets and little ‘demand, and ‘expectations’ moved quickly. They ignore the experience of hyperinflations and currency collapses, which happen in economies well below potential.”

Yellen (2014Aug22) states that “Historically, slack has accounted for only a small portion of the fluctuations in inflation. Indeed, unusual aspects of the current recovery may have shifted the lead-lag relationship between a tightening labor market and rising inflation pressures in either direction.”

Chart VI-1B provides the tortuous Phillips Circuit of Brazil from 1963 to 1987. There were no reliable consumer price index and unemployment data in Brazil for that period. Chart VI-1B used the more reliable indicator of inflation, the wholesale price index, and idle capacity of manufacturing as a proxy of unemployment in large urban centers.

 

Chart VI1-B, Brazil, Phillips Circuit, 1963-1987

Source: ©Carlos Manuel Pelaez, O Cruzado e o Austral: Análise das Reformas Monetárias do Brasil e da Argentina. São Paulo: Editora Atlas, 1986, pages 94-5. Reprinted in: Brazil. Tomorrow’s Italy, The Economist, 17-23 January 1987, page 25.

 

© Carlos M. Pelaez, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026.

 

I IB Stagnating Real Disposable Income and Consumption Expenditures. The Bureau of Economic Analysis (BEA) provides important revisions and enhancements of data on personal income and outlays since 1929 (http://www.bea.gov/iTable/index_nipa.cfm). There are waves of changes in personal income and expenditures in Table IB-1 that correspond somewhat to inflation waves observed worldwide (https://cmpassocregulationblog.blogspot.com/2022/04/inflation-accelerating-worldwide.html and earlier https://cmpassocregulationblog.blogspot.com/2022/03/accelerating-inflation-throughout-world.html) because of the influence through price indexes. There are wide fluctuations in Nov and Dec 2012 by the rush to realize income of all forms in anticipation of tax increases beginning in Jan 2013. There is major distortion in Jan 2013 because of higher contributions in payrolls to government social insurance that caused sharp reduction in personal income and disposable personal income. The Bureau of Economic Analysis (BEA) explains as follows (page 3 http://www.bea.gov/newsreleases/national/pi/2013/pdf/pi0313.pdf):

 

“The February and January [2013] changes in disposable personal income (DPI) mainly reflected the effect of special factors in January, such as the expiration of the “payroll tax holiday” and the acceleration of bonuses and personal dividends to November and to December [2012] in anticipation of changes in individual tax rates.”

 

The BEA provides the annual update of the national income and product account (https://cmpassocregulationblog.blogspot.com/2017/07/data-dependent-monetary-policy-with_30.html): “Annual Update of the National Income and Product Accounts

The estimates released today reflect the results of the annual update of the national income and

product accounts (NIPAs) in conjunction with preliminary estimates for June 2017. The update covers the most recent 3 years and the first 5 months of 2017. For more information, see information on the “2017 Annual Update” on BEA’s website. Additionally, the August Survey of Current Business will contain an article that describes the results in detail.”

 

The BEA provides “Comprehensive Update of the National Income and Product Accounts” on Jul 31, 2018 with revisions since 1929 (https://cmpassocregulationblog.blogspot.com/2018/07/revision-of-united-states-national.html): “The estimates released today also reflect the results of the 15th comprehensive update of the National Income and Product Accounts (NIPAs). The updated estimates reflect previously announced improvements (https://www.bea.gov/scb/2018/04-april/0418-preview-2018-comprehensive-nipa-update.htm), and include the introduction of new not seasonally adjusted estimates for GDP, GDI and their major components. For more information, see the Technical Note. Revised NIPA table stubs, initial results, and background materials are available on the BEA website (https://www.bea.gov/index.htm).”  The BEA provides the “Annual Update of the National Income and Product Accounts” on Jul 26, 2019 (https://www.bea.gov/system/files/2019-07/NIPA-AU19-Briefing.pdf).

            The BEA provides the annual update of the National Income and Product Accounts on Jul 31, 2020 (https://www.bea.gov/sites/default/files/2020-07/pi0620.pdf): “The estimates released today also reflect the results of the Annual Update of the National Income and

Product Accounts (NIPAs). The timespan of the update is the first quarter of 2015 through the fourth quarter of 2019 for estimates of real GDP and its major components, and the first quarter of 1999 through the fourth quarter of 2019 for estimates of income and saving. The reference year remains 2012. More information on the 2020 Annual Update is included in the May Survey of Current Business article, “GDP and the Economy.”

            The BEA provides the annual update of the National Income and Product Accounts on Jul 30, 2021 (https://www.bea.gov/sites/default/files/2021-07/pi0621.pdf): “Today’s release also reflects the Annual Update of the National Income and Product Accounts. The timespan of the update is the first quarter of 1999 through the first quarter of 2021 and resulted in revisions to GDP, GDI, and their major components. The reference year remains 2012. With today's release, most NIPA tables are available through BEA’s Interactive Data application on the BEA website (www.bea.gov). See Information on Updates to the National Economic Accounts for the complete table release schedule and a summary of results through 2020, which includes a discussion of methodology changes. A table showing the major current dollar revisions and their sources for each component of GDP, national income, and personal income is also provided. The August 2021 Survey of Current Business will contain an article describing the update in more detail. Previously published estimates, which are superseded by today's release, are found in BEA’s archives.”

            The BEA provides the annual update of the National Income and Product Accounts on Sep 30, 2022 (https://www.bea.gov/sites/default/files/2022-09/pi0822.pdf): “Annual Update of the National Economic Accounts Today’s release presents results from the Annual Update of the National Economic Accounts and includes revised estimates for January 2017 through March 2022. The reference year remains 2012. - 2 - Revisions to annual estimates of personal income and outlays are shown in table 12. Revised and previously published changes in monthly personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI, and real PCE are shown in table 13. Revised and previously published changes in annual and quarterly estimates are shown in table 14. Monthly estimates for January through March of 2022 have been updated as part of the annual update, including revisions resulting from the incorporation of first-quarter wage and salary data from the Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages program. Estimates for April through July have been updated to reflect revised monthly data from the BLS Current Employment Statistics program. 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 for June and July.”

The BEA provides the annual update of the National Income and Product Accounts on Sep 29, 2023 (https://www.bea.gov/sites/default/files/2023-09/pi0823.pdf): “Comprehensive Update of the National Economic Accounts Today’s release presents results from the comprehensive update of the National Economic Accounts. The revisions for income estimates begin with January 1979 and revisions for consumer spending begin with January 2013. Monthly estimates for January through March of 2023 include revisions resulting from the incorporation of first-quarter wage and salary data from the Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages program. Estimates for April through July of 2023 have been updated to reflect revised monthly data from the BLS Current Employment Statistics program. Revised and previously published changes in monthly personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI, and real PCE are shown in table 8 of this release. Updated quarterly and - 2 - annual estimates of personal income and outlays were presented as part of the third release of GDP for the second quarter of 2023 on September 28, 2023.”          

The BEA provides the annual update of the National Income and Product Accounts on Sep 27, 2024 (https://www.bea.gov/sites/default/files/2024-09/pi0824.pdf): ”Today’s release presents results from the annual update of the National Economic Accounts. The revisions for income and consumer spending estimates begin with January 2019. Monthly estimates for January through March of 2024 include revisions resulting from the incorporation of first-quarter wage and salary data from the Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages program. Estimates for wages and salaries for April through July of 2024 have been updated to reflect revised monthly data from the BLS Current Employment Statistics program. Page 2 of 13 Revised and previously published changes in monthly personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI and real PCE are shown in table 8 of this release. Updated quarterly and annual estimates of personal income and outlays were presented as part of the third estimate of GDP for the second quarter of 2024 on September 26, 2024.”

The BEA provides the annual update of the National Income and Product Accounts on Sep 26, 2025 (https://www.bea.gov/sites/default/files/2025-09/pi0825.pdf): ” Today’s release presents monthly results from the annual update of the National Economic Accounts.

The revisions for estimates of personal income and outlays begin with January 2020. Monthly estimates for January through March of 2025 include revisions resulting from the incorporation of first-quarter wage and salary data from the Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages program. Estimates for wages and salaries for April through July of 2025 have been updated to reflect revised monthly data from the BLS Current Employment Statistics program. Refer to "Information on 2025 Annual Updates to the National, Industry, and State and Local Economic Accounts" for more information. Revised and previously published changes in monthly personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI, and real PCE are shown in table 8 of this release. Updated quarterly and annual estimates of personal income and outlays were presented as part of the third estimate of GDP

for the second quarter of 2025 on September 25, 2025.”

The emphasis is now shifting to the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021). In the first wave, nominal personal income increased at 4.9 percent in Jan 2019 while nominal disposable personal income increased at 1.2 percent. Nominal personal consumption expenditures increased at 2.4 percent. Real disposable income increased at 2.4 percent and real personal consumption expenditures increased at 3.7 percent. In the second wave, nominal personal income increased at 4.9 percent in Feb-Mar 2019 while nominal disposable personal income increased at 3.7 percent. Nominal personal consumption expenditures increased at 6.8 percent. Real disposable income increased at 1.2 percent and real personal consumption expenditures increased at 4.3 percent. In the third wave, nominal personal income increased at 2.0 percent in Apr-Jun 2019 while nominal disposable income increased at 1.6 percent. Nominal personal consumption expenditures increased at 4.5 percent. Real disposable income changed at 0.0 percent and real personal consumption expenditures increased at 2.8 percent. In the fourth wave, nominal personal income increased at 1.2 percent annual equivalent in Jul 2019 while nominal disposable income increased at 3.7 percent. Nominal personal consumption increased at 7.4 percent. Real disposable income increased at 1.2 percent and real personal consumption expenditures increased at 6.2 percent. In the fifth wave, nominal personal income increased at 4.3 percent annual equivalent in Aug-Sep 2019 while nominal disposable income increased at 5.5 percent. Nominal personal consumption increased at 3.7 percent. Real disposable income increased at 4.3 percent and real personal consumption expenditures increased at 3.7 percent. In the sixth wave, nominal personal income increased at 2.4 percent annual equivalent in Oct-Dec 2019 while nominal disposable income increased at 1.6 percent. Nominal personal consumption increased at 4.9 percent. Real disposable income changed at minus 0.4 percent and real personal consumption expenditures increased at 2.8 percent. In the seventh wave, nominal personal income increased at 10.7 percent annual equivalent in Jan-Feb 2020 while nominal disposable income increased at 10.0 percent. Nominal personal consumption increased at 1.8 percent. Real disposable income increased at 8.7 percent and real personal consumption expenditures increased at 1.2 percent. In the eighth wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income increased at 74.3 percent annual equivalent in Mar-Apr 2020 while nominal disposable income increased at 103.7 percent. Nominal personal consumption decreased at 68.1 percent. Real disposable income increased at 111.8 percent and real personal consumption expenditures decreased at 67.0 percent. The BEA explains (https://www.bea.gov/sites/default/files/2020-05/pi0420_0.pdf): “The increase in personal income in April primarily reflected an increase in government social benefits to persons as payments were made to individuals from federal economic recovery programs in response to the COVID-19 pandemic (table 3). For more information, see “How are the economic impact payments for individuals authorized by the CARES Act of 2020 recorded in the NIPAs?” “Other government social benefits to persons” are $3,122.1 billion in Apr 2020 compared with $528.3 billion in Mar 2020” (https://www.bea.gov/sites/default/files/2020-05/pi0420_0.pdf).  In the ninth wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income decreased at 20.8 percent annual equivalent in May-Jun 2020 while nominal disposable income decreased at 26.0 percent. Nominal personal consumption increased at 1127.6 percent. Real disposable income decreased at 28.7 percent and real personal consumption expenditures increased at 121.2 percent. The BEA explains as follows (https://www.bea.gov/sites/default/files/2020-06/pi0520_0.pdf): “The May estimate for personal income and outlays was impacted by the response to the spread

of COVID-19. Federal economic recovery payments continued but were at a lower level than in

April, and government “stay-at-home” orders were partially lifted in May. The full economic

effects of the COVID-19 pandemic cannot be quantified in the personal income and outlays

estimate for May because the impacts are generally embedded in source data and cannot be

separately identified. For more information, see the “highlights” file and the Effects of Selected

Federal Pandemic Response Programs on Personal Income table.” The BEA explains as follows (https://www.bea.gov/sites/default/files/2020-07/pi0620.pdf): “The decrease in personal income in June was more than accounted for by a decrease in government social benefits to persons as payments made to individuals from federal economic recovery programs in response to the COVID-19 pandemic continued, but at a lower level than in May (table 3). For more

information, see “How are the economic impact payments for individuals authorized by the CARES Act of 2020 recorded in the NIPAs? Partially offsetting the decrease in other government social benefits were increases in compensation of employees and proprietors’ income as portions of the economy continued to reopen in June.

Unemployment insurance benefits, based primarily on unemployment claims data from the Department of Labor’s Employment and Training Administration, also increased in June. For more information, see “How will the expansion of unemployment benefits in response to the COVID-19 pandemic be recorded

in the NIPAs?”.” In the ninth wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income increased at 16.8 percent annual equivalent in Jul 2020 while nominal disposable income increased at 15.4 percent. Nominal personal consumption increased at 23.9 percent. Real disposable income increased at 11.4 percent and real personal consumption expenditures increased at 19.6 percent. The BEA explains as follows (https://www.bea.gov/sites/default/files/2020-08/pi0720.pdf): “The July estimate for personal income and outlays was impacted by the response to the spread of COVID-19. Federal economic recovery payments continued but were at a lower level than in June,

and government “stay-at-home” orders lifted in some areas of the country. 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. For more information, see Effects of Selected Federal Pandemic Response Programs on Personal Income. The increase in personal income in July was more than accounted for by compensation of employees as portions of the economy continued to reopen (table 3). Proprietors’ income and rental income of persons also contributed to the increase. Partially offsetting these increases were decreases in government social benefits and income on assets.

Unemployment insurance benefits, based primarily on unemployment claims data from the Department of Labor’s Employment and Training Administration, decreased in July. For more information, see “How will federal government responses to the COVID-19 pandemic affect unemployment insurance benefits?”.” In the tenth wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income decreased at 30.6 percent annual equivalent in Aug 2020 while nominal disposable income decreased at 35.6 percent. Nominal personal consumption increased at 14.0 percent. Real disposable income decreased at 37.2 percent and real personal consumption expenditures increased at 10.0 percent. The BEA explains as follows (https://www.bea.gov/sites/default/files/2020-10/pi0820.pdf): “The decrease in personal income in August was more than accounted for by a decrease in

unemployment insurance benefits, based primarily on unemployment claims data from the Department of Labor’s Employment and Training Administration (table 3). In particular, the Federal Pandemic Unemployment Compensation program which provided a temporary weekly supplemental payment of $600 for those receiving unemployment benefits expired on July 31. For more information, see “How

will federal government responses to the COVID-19 pandemic affect unemployment insurance

benefits?”. Partially offsetting the decrease in unemployment insurance benefits was an increase in compensation in August. Government wage and salary disbursements increased $17.5 billion in August, following an increase of $14.5 billion in July. Temporary and intermittent Census decennial workers boosted government wages and salaries by $10.8 billion in August.” In the eleventh wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income increased at 10.0 percent annual equivalent in Sep 2020 while nominal disposable income increased at 8.7 percent. Nominal personal consumption increased at 18.2 percent. Real disposable income increased at 7.4 percent and real personal consumption expenditures increased at 15.4 percent. The BEA explains the process (https://www.bea.gov/sites/default/files/2020-10/pi0920.pdf). In the eleventh wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income decreased at 4.1 percent annual equivalent in Oct-Nov 2020 while nominal disposable income decreased at 8.1 percent. Nominal personal consumption increased at 1.2 percent. Real disposable income decreased at 9.2 percent and real personal consumption expenditures changed at 0.0 percent. The BEA explains the process (https://www.bea.gov/sites/default/files/2020-11/pi1020.pdf  and https://www.bea.gov/sites/default/files/2020-12/pi1120.pdf). In the twelfth wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income increased at 89.7 percent annual equivalent in Dec 2020-Jan 2021 while nominal disposable income increased at 96.9 percent. Nominal personal consumption increased at 16.1 percent. Real disposable income increased at 88.2 percent and real personal consumption expenditures increased at 10.7 percent. The BEA explains the process (https://www.bea.gov/sites/default/files/2021-02/pi0121.pdf). In the thirteenth wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/cycles.html), in the lockdown of economic activity in the COVID-19 event, nominal personal income decreased at 57.6 percent annual equivalent in Feb 2021 while nominal disposable income decreased at 62.8 percent. Nominal personal consumption decreased at 7.0 percent. Real disposable income decreased at 62.8 percent and real personal consumption expenditures decreased at 10.3 percent. The BEA explains the process (https://www.bea.gov/sites/default/files/2021-03/pi0221.pdf). In the fourteenth wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income increased at 865.6 percent annual equivalent in Mar 2021 while nominal disposable income increased at 1158.9 percent. Nominal personal consumption increased at 75.5 percent. Real disposable income increased at 1087.5 percent and real personal consumption expenditures increased at 65.7 percent. The BEA explains the process (https://www.bea.gov/sites/default/files/2021-04/pi0321.pdf): “The increase in personal income in March largely reflected an increase in government social benefits (table 3). Within government social benefits, “other” social benefits increased. The American Rescue Plan Act established an additional round of direct economic impact payments to households.” In the fifteenth wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income decreased at 61.1 percent annual equivalent in Apr-May 2021 while nominal disposable income decreased at 66.7 percent. Nominal personal consumption increased at 10.7 percent. Real disposable income decreased at 68.6 percent and real personal consumption expenditures increased at 3.6 percent. The BEA explains the process (https://www.bea.gov/sites/default/files/2021-05/pi0421.pdf): “The decrease in personal income in April primarily reflected a decrease in government social benefits (table 3). Within government social benefits, "other" social benefits decreased as economic impact payments made to individuals from the American Rescue Plan Act of 2021 continued, but at a lower level than in March. Unemployment insurance also decreased, led by decreases in payments from the Pandemic Unemployment Compensation program.” The BEA explains further (https://www.bea.gov/sites/default/files/2021-06/pi0521.pdf): “The decrease in personal income in May primarily reflected a decrease in government social benefits (table 3). Within government social benefits, "other" social benefits decreased as economic impact payments made to individuals from the American Rescue Plan Act of 2021 continued, but at a lower level than in April. Unemployment insurance also decreased, led by decreases in payments from the Pandemic Unemployment Compensation program.” In the sixteenth wave, in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), nominal personal income increased at 2.4 percent annual equivalent in Jun 2021 while nominal disposable income changed at 0.0 percent. Nominal personal consumption increased at 18.2 percent. Real disposable income decreased at 5.8 percent and real personal consumption expenditures increased at 10.0 percent. The BEA explains the process (https://www.bea.gov/sites/default/files/2021-07/pi0621.pdf): “The estimate for June of personal income and outlays reflected the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic. Government social benefits associated with pandemic-related assistance programs declined in June. 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. For more information, see Effects of Selected Federal Pandemic Response Programs on Personal Income. The increase in personal income in June primarily reflected an increase in compensation of employees. Government social benefits decreased in June (table 3). Within compensation, the increase was primarily in private wages and salaries, reflecting Bureau of Labor Statistics Current Employment Statistics. Within government social benefits, "other" social benefits decreased as economic impact payments declined. Unemployment insurance also decreased, led by decreases in payments from the Pandemic Unemployment Compensation program.

The $155.4 billion increase in current dollar PCE in June reflected an increase of $29.3 billion in spending for goods and a $126.1 billion increase in spending for services (table 3). Within goods, an increase in nondurable goods was partly offset by a decrease in durable goods. Within nondurable goods, the increase was primarily accounted for by increases in “other” nondurable goods (mainly pharmaceuticals) as well as gasoline and other energy goods. Within durable goods, the decrease was primarily in motor vehicles and parts. Within services, increases were widespread across all spending categories, led by food services and accommodations. Detailed information on monthly PCE spending can be found on Table 2.3.5U.” In the seventeenth wave, nominal personal income increased at annual equivalent 14.0 percent in Jul 2021 while nominal disposable income increased at 14.0 percent. Nominal personal consumption expenditures increased at 3.7 percent. Real disposable income increased at 8.7 percent while real personal consumption expenditures decreased at 2.4 percent. The BEA explains as follows (https://www.bea.gov/sites/default/files/2021-08/pi0721.pdf): “The increase in personal income in July primarily reflected increases in government social benefits and compensation of employees (table 3). Within government social benefits, an increase in "other" social benefits (more than accounted for by advance Child Tax Credit payments as authorized by the American Rescue Plan) was partly offset by a decrease in unemployment insurance, reflecting a decrease in payments from the Pandemic Unemployment Compensation program. Within compensation, the increase was primarily in private wages and salaries, reflecting Bureau of Labor Statistics Current Employment Statistics.” In the eighteenth wave, nominal personal income increased at annual equivalent 2.4 percent in Aug 2021 while nominal disposable income increased at 2.4 percent. Nominal personal consumption expenditures increased at 14.0 percent. Real disposable income decreased at 2.4 percent while real personal consumption expenditures increased at 8.7 percent. The BEA explains as follows (https://www.bea.gov/sites/default/files/2021-10/pi0821.pdf): “The increase in personal income in August primarily reflected increases in compensation of employees and government social benefits (table 3). Within compensation, the increase primarily reflected an increase in private wages and salaries. Within government social benefits, an increase in "other" social benefits, reflecting advance Child Tax Credit payments authorized by the American Rescue Plan, was partly offset by a decrease in unemployment insurance, reflecting decreases in payments from the Pandemic Unemployment Compensation program.” In the nineteenth wave, nominal personal income decreased at annual equivalent 7.0 percent in Sep 2021 while nominal disposable income decreased at 9.2 percent. Nominal personal consumption expenditures increased at 6.2 percent. Real disposable income decreased at 12.4 percent while real personal consumption expenditures increased at 1.2 percent. The BEA explains as follows (https://www.bea.gov/sites/default/files/2021-10/pi0921.pdf): “The decrease in personal income in September primarily reflected a decrease in government social benefits, both in unemployment benefits and “other” benefits (table 3). Unemployment insurance decreased reflecting decreases in payments from the Pandemic Unemployment Compensation program, the Pandemic Emergency Unemployment Compensation program, and the Pandemic Unemployment Assistance program. “Other” social benefits decreased primarily reflecting decreases in the Provider Relief Fund, economic impact payments, and Paycheck Protection Program loans to nonprofit institutions.” In the twentieth wave, nominal personal income increased at annual equivalent 8.1 percent in Oct-Nov 2021 while nominal disposable income increased at 6.8 percent. Nominal personal consumption expenditures increased at 14.0 percent. Real disposable income decreased at 1.8 percent while real personal consumption expenditures increased at 4.9 percent. The BEA explains as follows (https://www.bea.gov/sites/default/files/2021-11/pi1021.pdf): “The increase in personal income in October primarily reflected increases in compensation of employees and personal income receipts on assets that were partly offset by a decrease in government social benefits (table 3). Within compensation, the increase primarily reflected an increase in private wages and salaries. Within personal income receipts on assets, both dividend income and interest income increased. Within government social benefits, unemployment insurance decreased, reflecting decreases in payments from three pandemic-related unemployment programs: Pandemic Unemployment Compensation Payments, Pandemic Emergency Unemployment Compensation, and Pandemic Unemployment Assistance (table 3).” The BEA explains further (https://www.bea.gov/sites/default/files/2021-12/pi1121.pdf): “The estimate for November personal income and outlays reflected the continued economic recovery and government response to the COVID-19 pandemic. Government social benefits increased in November, reflecting an increase in the Provider Relief Fund (extended by the American Rescue Plan) that was partly offset by declines in many other pandemic-assistance programs. 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. For more information, see Effects of Selected Federal Pandemic Response Programs on Personal Income.” In the twenty-first wave, nominal personal income increased at annual equivalent 3.7 percent in Dec 2021 while nominal disposable income increased at 2.4 percent. Nominal personal consumption expenditures increased at 2.4 percent. Real disposable income decreased at 5.8 percent while real personal consumption expenditures decreased at 4.7 percent. The BEA explains as follows (https://www.bea.gov/sites/default/files/2022-01/pi1221.pdf): “The increase in personal income in December primarily reflected an increase in compensation that was partly offset by a decrease in proprietors' income. Within compensation, the increase reflected increases in both private and government wages and salaries. Within proprietors' income, both nonfarm and farm income decreased (table 3). Government social benefits decreased slightly, reflecting the winding down of pandemic-related assistance programs. The estimate for December personal income and outlays reflected the continued economic recovery and government response to the COVID-19 pandemic. In December, COVID-19 cases resulted in continued restrictions and disruptions in the operations of establishments in some parts of the country. Government social benefits decreased, primarily reflecting the winding down of pandemic-related assistance programs. 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. For more information, see Effects of Selected Federal Pandemic Response Programs on Personal Income.” In the twenty-second wave, nominal personal income changed at annual equivalent 0.0 percent in Jan 2022 while nominal disposable income decreased at 20.6 percent. Nominal personal consumption expenditures increased at 7.4 percent. Real disposable income decreased at 25.3 percent while real personal consumption expenditures increased at 1.2 percent. The BEA explains as follows (https://www.bea.gov/sites/default/files/2022-02/pi0122.pdf):” The increase in personal income in January primarily reflected an increase in compensation that was partly offset by a decrease in government social benefits (table 3). Within compensation, the increase reflected increases in both private and government wages and salaries. Within government social benefits, a decrease in "other" social benefits (reflecting the end of advance Child Tax Credit payments as authorized by the American Rescue Plan) was partly offset by an increase in Social Security benefits (reflecting a 5.9 percent cost-of-living adjustment). The $337.2 billion increase in current-dollar PCE in January reflected an increase of $285.4 billion in spending for goods and a $51.8 billion increase in spending for services (table 3). Within goods, increases were widespread, led by motor vehicles and parts, "other" nondurable goods, and recreational goods and vehicles. Within services, the largest contributor to the increase was spending for housing and utilities. Detailed information on monthly PCE spending can be found on Table 2.3.5U.” In the twenty-third wave, nominal personal income increased at annual equivalent 6.2 percent in Feb-Apr 2022 while nominal disposable income increased at 5.3 percent. Nominal personal consumption expenditures increased at 12.2 percent. Real disposable income decreased at 2.0 percent while real personal consumption expenditures increased at 4.5 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2022-03/pi0222.pdf https://www.bea.gov/sites/default/files/2022-04/pi0322.pdf https://www.bea.gov/sites/default/files/2022-05/pi0422.pdf https://www.bea.gov/sites/default/files/2022-12/pi1022.pdf). In the twenty-forth wave, nominal personal income increased at annual equivalent 5.5 percent in May-Jun 2022 while nominal disposable income increased at 7.4 percent. Nominal personal consumption expenditures increased at 9.4 percent. Real disposable income decreased at 1.8 percent while real personal consumption expenditures changed at 0.0 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2022-06/pi0522.pdf https://www.bea.gov/sites/default/files/2022-07/pi0622.pdf https://www.bea.gov/sites/default/files/2022-12/pi1022.pdf). In the twenty-fifth wave, nominal personal income increased at annual equivalent 8.7 percent in Jul-Sep 2022 while nominal disposable income increased at 12.2 percent. Nominal personal consumption expenditures increased at 5.3 percent. Real disposable income increased at 9.2 percent while real personal consumption expenditures increased at 2.8 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2022-08/pi0722.pdf https://www.bea.gov/sites/default/files/2022-09/pi0822.pdf https://www.bea.gov/sites/default/files/2022-10/pi0922.pdf https://www.bea.gov/sites/default/files/2022-12/pi1022.pdf). In the twenty-sixth wave, nominal personal income increased at annual equivalent 8.7 percent in Oct 2022 while nominal disposable income increased at 10.0 percent. Nominal personal consumption expenditures increased at 7.4 percent. Real disposable income increased at 3.7 percent while real personal consumption expenditures increased at 2.4 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2022-12/pi1022.pdf). In the twenty-sixth wave, nominal personal income increased at annual equivalent 4.3 percent in Nov-Dec 2022 while nominal disposable income increased at 6.2 percent. Nominal personal consumption expenditures changed at 0.0 percent. Real disposable income increased at 4.3 percent while real personal consumption expenditures decreased at 2.4 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2022-12/pi1122.pdf https://cmpassocregulationblog.blogspot.com/2023/01/real-disposable-income-or-personal.html). In the twenty-seventh wave, nominal personal income increased at annual equivalent 8.7 percent in Jan 2023 while nominal disposable income increased at 34.5 percent. Nominal personal consumption expenditures increased at 23.9 percent. Real disposable income increased at 26.8 percent while real personal consumption expenditures increased at 16.8 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2023-02/pi0123.pdf). In the twenty-eighth wave, nominal personal income increased at annual equivalent 7.4 percent in Feb-Mar 2023 while nominal disposable income increased at 9.4 percent. Nominal personal consumption expenditures increased at 2.4 percent. Real disposable income increased at 6.8 percent while real personal consumption expenditures decreased at 0.6 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2023-03/pi0223.pdf https://www.bea.gov/sites/default/files/2023-04/pi0323_0.pdf). In the twenty-ninth wave, nominal personal income increased at annual equivalent 6.2 percent in Apr-May 2023 while nominal disposable income increased at 6.8 percent. Nominal personal consumption expenditures increased at 4.9 percent. Real disposable income increased at 3.7 percent while real personal consumption expenditures increased at 1.8 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2023-05/pi0423.pdf https://www.bea.gov/sites/default/files/2023-06/pi0523.pdf https://www.bea.gov/sites/default/files/2023-07/pi0623.pdf). In the thirtieth wave, nominal personal income increased at annual equivalent 4.3 percent in Jun-Jul 2023 while nominal disposable income increased at 4.3 percent. Nominal personal consumption expenditures increased at 7.4 percent. Real disposable income increased at 1.8 percent while real personal consumption expenditures increased at 4.9 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2023-07/pi0623.pdf https://www.bea.gov/sites/default/files/2023-08/pi0723.pdf https://www.bea.gov/sites/default/files/2024-02/pi0124.pdf). In the thirty-first wave, nominal personal income increased at annual equivalent 4.9 percent in Aug-Sep 2023 while nominal disposable income increased at 4.9 percent. Nominal personal consumption expenditures increased at 5.5 percent. Real disposable income increased at 0.6 percent while real personal consumption expenditures increased at 1.2 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2023-09/pi0823.pdf https://www.bea.gov/sites/default/files/2023-10/pi0923.pdf https://www.bea.gov/sites/default/files/2024-02/pi0124.pdf). In the thirty-second wave, nominal personal income increased at annual equivalent 5.3 percent in Oct-Dec 2023 while nominal disposable income increased at 5.7 percent. Nominal personal consumption expenditures increased at 4.9 percent. Real disposable income increased at 4.5 percent while real personal consumption expenditures increased at 4.5 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2023-11/pi1023.pdf https://www.bea.gov/sites/default/files/2023-12/pi1123.pdf https://www.bea.gov/sites/default/files/2024-01/pi1223.pdf https://www.bea.gov/sites/default/files/2024-02/pi0124.pdf https://www.bea.gov/sites/default/files/2024-06/pi0524.pdf) In the thirty third wave, nominal personal income increased at annual equivalent 11.4 percent in Jan 2024 while nominal disposable income increased at 12.7 percent. Nominal personal consumption expenditures increased at 1.2 percent. Real disposable income increased at 6.2 percent while real personal consumption expenditures decreased at 4.7 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2024-02/pi0124.pdf https://www.bea.gov/sites/default/files/2024-04/pi0324.pdf https://www.bea.gov/sites/default/files/2024-06/pi0524.pdf). In the thirty fourth wave, nominal personal income increased at annual equivalent 6.2 percent in Feb-Mar 2024 while nominal disposable income increased at 5.5 percent. Nominal personal consumption expenditures increased at 7.3 percent. Real disposable income increased at 1.2 percent while real personal consumption expenditures increased at 4.3 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2024-03/pi0224.pdf https://www.bea.gov/sites/default/files/2024-04/pi0324.pdf https://www.bea.gov/sites/default/files/2024-06/pi0524.pdf). In the thirty fourth wave, nominal personal income increased at annual equivalent 5.5 percent in Apr-May 2024 while nominal disposable income increased at 4.9 percent. Nominal personal consumption expenditures increased at 5.5 percent. Real disposable income increased at 3.0 percent while real personal consumption expenditures increased at 4.3 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2024-06/pi0524.pdf  https://www.bea.gov/sites/default/files/2024-07/pi0624.pdf https://www.bea.gov/sites/default/files/2024-08/pi0724.pdf https://www.bea.gov/sites/default/files/2024-11/pi1024.pdf). In the thirty fifth wave, nominal personal income increased at annual equivalent 3.7 percent in Jun-Sep 2024 while nominal disposable income increased at 3.0 percent. Nominal personal consumption expenditures increased at 5.9 percent. Real disposable income increased at 1.2 percent while real personal consumption expenditures increased at 4.0 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2024-07/pi0624.pdf https://www.bea.gov/sites/default/files/2024-08/pi0724.pdf  https://www.bea.gov/sites/default/files/2024-09/pi0824.pdf https://www.bea.gov/sites/default/files/2024-10/pi0924.pdf https://www.bea.gov/sites/default/files/2024-11/pi1024.pdf https://www.bea.gov/sites/default/files/2024-12/pi1124.pdf). In the thirty sixth wave, nominal personal income increased at annual equivalent 6.2 percent in Oct 2024 while nominal disposable income increased at 6.2 percent. Nominal personal consumption expenditures increased at 4.9 percent. Real disposable personal income increased at 2.4 percent while real personal consumption expenditures increased at 1.2 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2024-11/pi1024.pdf  https://www.bea.gov/sites/default/files/2024-12/pi1124.pdf  https://www.bea.gov/sites/default/files/2025-03/pi0225.pdf). In the thirty-seventh wave, nominal personal income increased at annual equivalent 4.9 percent in Nov-Dec 2024 while nominal disposable income increased at 4.3 percent. Nominal personal consumption expenditures increased at 8.7 percent. Real disposable income increased at 1.8 percent while real personal consumption expenditures increased at 6.2 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2024-11/pi1024.pdf https://www.bea.gov/sites/default/files/2025-01/pi1224.pdf https://www.bea.gov/sites/default/files/2025-03/pi0225.pdf https://www.bea.gov/sites/default/files/2025-05/pi0425.pdf). In the thirty-eighth wave, nominal personal income increased at annual equivalent 6.8 percent in Jan-Feb 2025 while nominal disposable income increased at 6.2 percent. Nominal personal consumption expenditures changed at 0.0 percent. Real disposable income increased at 1.2 percent while real personal consumption expenditures decreased at 4.1 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2025-02/pi0125_0.pdf https://www.bea.gov/sites/default/files/2025-03/pi0225.pdf). In the thirty-ninth wave, nominal personal income increased at annual equivalent 10.0 percent in Mar-Apr 2025 while nominal disposable income increased at 10.0 percent. Nominal personal consumption expenditures increased at 6.8 percent. Real disposable income increased at 9.4 percent while real personal consumption expenditures increased at 5.5 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2025-02/pi0125_0.pdf https://www.bea.gov/sites/default/files/2025-03/pi0225.pdf https://www.bea.gov/sites/default/files/2025-04/pi0325.pdf https://www.bea.gov/sites/default/files/2025-05/pi0425.pdf). In the fortieth wave, nominal personal income decreased at annual equivalent 4.7 percent in May 2025 while nominal disposable income decreased at 5.8 percent. Nominal personal consumption expenditures changed at 0.0 percent. Real disposable income decreased at 8.1 percent while real personal consumption expenditures decreased at 1.2 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2025-06/pi0525.pdf https://www.bea.gov/sites/default/files/2025-07/pi0625.pdf https://www.bea.gov/sites/default/files/2025-09/pi0825.pdf). In the forty-first wave, nominal personal income increased at annual equivalent 2.4 percent in Jun 2025 while nominal disposable income increased at 2.4 percent. Nominal personal consumption expenditures increased at 6.2 percent. Real disposable income decreased at 1.2 percent while real personal consumption expenditures increased at 3.7 percent. The BEA provides detailed explanations (https://www.bea.gov/sites/default/files/2025-07/pi0625.pdf https://www.bea.gov/sites/default/files/2025-08/pi0725.pdf https://www.bea.gov/sites/default/files/2025-09/pi0825.pdf).

In the forty-second wave, nominal personal income increased at annual equivalent 4.0 percent in Jul-Sep 2025 while nominal disposable income increased at 3.3 percent. Nominal personal consumption expenditures increased at 5.2 percent. Real disposable income increased at 1.5 percent while real personal consumption expenditures increased at 2.7 percent. In the forty-third wave, nominal personal income increased at annual equivalent 4.0 percent in Jul-Sep 2025 while nominal disposable income increased at 3.3 percent. Nominal personal consumption expenditures increased at 5.2 percent. Real disposable income increased at 1.5 percent while real personal consumption expenditures increased at 2.7 percent. In the forty-fourth wave, nominal personal income increased at annual equivalent 1.2 percent in Oct 2025 while nominal disposable income increased at 1.2 percent. Nominal personal consumption expenditures increased at 6.2 percent. Real disposable income decreased at 1.2 percent while real personal consumption expenditures increased at 3.7 percent. In the fifth wave, nominal personal income increased at annual equivalent 3.7 percent in Nov 2025 while nominal disposable income increased at 1.2 percent. Nominal personal consumption expenditures increased at 6.2 percent. Real disposable income increased at 1.2 percent while real personal consumption expenditures increased at 3.7 percent.

US economic growth has been at only 2.4 percent on average in the cyclical expansion in the 65 quarters from IIIQ2009 to IIIQ2025 and in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021). Boskin (2010Sep) measures that the US economy grew at 6.2 percent in the first four quarters and 4.5 percent in the first 12 quarters after the trough in the second quarter of 1975; and at 7.7 percent in the first four quarters and 5.8 percent in the first 12 quarters after the trough in the first quarter of 1983 (Professor Michael J. Boskin, Summer of Discontent, Wall Street Journal, Sep 2, 2010  http://professional.wsj.com/article/SB10001424052748703882304575465462926649950.html). There are new calculations using the revision of US GDP and personal income data since 1929 by the Bureau of Economic Analysis (BEA) (https://apps.bea.gov/iTable/index_nipa.cfm) and the second estimate of GDP for IIIQ2025 (https://www.bea.gov/sites/default/files/2026-01/gdp3q25-updated.pdf). The average of 7.7 percent in the first four quarters of major cyclical expansions is in contrast with the rate of growth in the first four quarters of the expansion from IIIQ2009 to IIQ2010 of only 2.9 percent obtained by dividing GDP of $16,743.2 billion in IIQ2010 by GDP of $16,269.1 billion in IIQ2009 {[($16,743.2/$16,269.1) -1]100 = 2.9%] or accumulating the quarter-on-quarter growth rates (https://cmpassocregulationblog.blogspot.com/2026/02/ and earlier https://cmpassocregulationblog.blogspot.com/2025/07/us-gdp-contracted-at-05-percent-saar-in.html and earlier https://cmpassocregulationblog.blogspot.com/2025/06/us-gdp-contracted-at-02-percent-saar-in.html). The expansion from IQ1983 to IQ1986 was at the average annual  growth rate of 5.7 percent, 5.3 percent from IQ1983 to IIIQ1986, 5.1 percent from IQ1983 to IVQ1986, 5.0 percent from IQ1983 to IQ1987, 5.0 percent from IQ1983 to IIQ1987, 4.9 percent from IQ1983 to IIIQ1987, 5.0 percent from IQ1983 to IVQ1987, 4.9 percent from IQ1983 to IQ1988, 4.9 percent from IQ1983 to IIQ1988, 4.8 percent from IQ1983 to IIIQ1988, 4.8 percent from IQ1983 to IVQ1988, 4.8 percent from IQ1983 to IQ1989, 4.7 percent from IQ1983 to IIQ1989, 4.6 percent from IQ1983 to IIIQ1989, 4.5 percent from IQ1983 to IVQ1989, 4.5 percent from IQ1983 to IQ1990, 4.4 percent from IQ1983 to IIQ1990, 4.3 percent from IQ1983 to IIIQ1990, 4.0 percent from IQ1983 to IVQ1990, 3.8 percent from IQ1983 to IQ1991, 3.8 percent from IQ1983 to IIQ1991, 3.8 percent from IQ1983 to IIIQ1991, 3.7 percent from IQ1983 to IVQ1991, 3.7 percent from IQ1983 to IQ1992, 3.7 percent from IQ1983 to IIQ1992, 3.7 percent from IQ1983 to IIIQ1992, 3.8 percent from IQ1983 to IVQ1992, 3.7 percent from IQ1983 to IQ1993, 3.7 percent from IQ1983 to IIQ1993, 3.6 percent from IQ1983 to IIIQ1993, 3.7 percent from IQ1983 to IVQ1993, 3.7 percent from IQ1983 to IQ1994, 3.7 percent from IQ1983 to IIQ1994, 3.7 percent from IQ1983 to IIIQ1994, 3.7 percent from IQ1983 to IVQ1994, 3.6 percent from IQ1983 to IQ1995, 3.6 percent from IQ1983 to IIQ1995, 3.6 percent from IQ1983 to IIIQ1995, 3.6 percent from IQ1982 to IVQ1995, 3.6 percent from IQ1982 to IQ1996, 3.6 percent from IQ1983 to IIQ1996, 3.6 percent from IQ1983 to IIIQ1996, 3.6 percent from IQ1983 to IVQ1996, 3.6 percent from IQ1983 to IQ1997, 3.7 percent from IQ1983 to IIQ1997, 3.7 percent from IQ1983 to IIIQ1997, 3.7 percent from IQ1983 to IVQ1997, 3.7 percent from IQ1983 to IQ1998, 3.7 percent from IQ1983 to IIQ1998, 3.7 percent from IQ1983 to IIIQ1998 and at 7.9 percent from IQ1983 to IVQ1983 (https://www.bea.gov/sites/default/files/2026-01/gdp3q25-updated.pdf and https://cmpassocregulationblog.blogspot.com/2025/07/us-gdp-contracted-at-05-percent-saar-in.html and earlier https://cmpassocregulationblog.blogspot.com/2025/06/us-gdp-contracted-at-02-percent-saar-in.html). The National Bureau of Economic Research (NBER) dates a contraction of the US from IQ1990 (Jul) to IQ1991 (Mar) (https://www.nber.org/cycles.html). The expansion lasted until another contraction beginning in IQ2001 (Mar). US GDP contracted 1.4 percent from the pre-recession peak of $10,090.6 billion of chained 2017 dollars in IIIQ1990 to the trough of $9951.9 billion in IQ1991 (https://apps.bea.gov/iTable/index_nipa.cfm). The US maintained growth at 3.0 percent on average over entire cycles with expansions at higher rates compensating for contractions. Growth at trend in the entire cycle from IVQ2007 to IIIQ2025 and in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021) would have accumulated to 69.0 percent. GDP in IIIQ2025 would be $28,585.0 billion (in constant dollars of 2017) if the US had grown at trend, which is higher by $4558.2 billion than actual $24,026.8 billion. There are more than four trillion dollars of GDP less than at trend, explaining the 25.3 million unemployed or underemployed equivalent to actual unemployment/underemployment of 13.9 percent of the effective labor force with the largest part originating in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021). Unemployment is decreasing while employment is increasing in initial adjustment of the lockdown of economic activity in the global recession resulting from the COVID-19 event (https://cmpassocregulationblog.blogspot.com/2025/06/us-gdp-contracted-at-real-seasonally.html and earlier https://cmpassocregulationblog.blogspot.com/2025/05/us-gdp-contracted-at-real-seasonally_30.html). US GDP in IIIQ2025 is 15.9 percent lower than at trend. US GDP grew from $16,915.2 billion in IVQ2007 in constant dollars to $24,026.8 billion in IIIQ2025 or 42.0 percent at the average annual equivalent rate of 2.0 percent. Professor John H. Cochrane (2014Jul2) estimates US GDP at more than 10 percent below trend. Cochrane (2016May02) measures GDP growth in the US at average 3.5 percent per year from 1950 to 2000 and only at 1.76 percent per year from 2000 to 2015 with only at 2.0 percent annual equivalent in the current expansion. Cochrane (2016May02) proposes drastic changes in regulation and legal obstacles to private economic activity. The US missed the opportunity to grow at higher rates during the expansion and it is difficult to catch up because growth rates in the final periods of expansions tend to decline. The US missed the opportunity for recovery of output and employment always afforded in the first four quarters of expansion from recessions. Zero interest rates and quantitative easing were not required or present in successful cyclical expansions and in secular economic growth at 3.0 percent per year and 2.0 percent per capita as measured by Lucas (2011May). There is cyclical uncommonly slow growth in the US instead of allegations of secular stagnation. There is similar behavior in manufacturing. There is classic research on analyzing deviations of output from trend (see for example Schumpeter 1939, Hicks 1950, Lucas 1975, Sargent and Sims 1977). The long-term trend is growth of manufacturing at average 2.8 percent per year from Dec 1919 to Dec 2025. Growth at 2.8 percent per year would raise the NSA index of manufacturing output (SIC, Standard Industrial Classification) from 106.8904 in Dec 2007 to 175.7174 in Dec 2025. The actual index NSA in Dec 2025 is 95.9328 which is 45.4 percent below trend. The underperformance of manufacturing in Mar-Nov 2020 originates partly in the earlier global recession augmented by the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021).  Manufacturing output grew at average 1.5 percent between Dec 1999 and Dec 2006. Using trend growth of 1.5 percent per year, the index would increase to 139.7422 in May 2025. The output of manufacturing at 95.9328 in Dec 2025 is 31.4 percent below trend under this alternative calculation. Using the NAICS (North American Industry Classification System), manufacturing output fell from the high of 108.5201 in Jun 2007 to the low of 84.8006 in Apr 2009 or 21.9 percent. The NAICS manufacturing index increased from 84.8006 in Apr 2009 to 95.6977 in Dec 2025 or 12.9 percent. The NAICS manufacturing index increased at the annual equivalent rate of 3.5 percent from Dec 1986 to Dec 2006. Growth at 3.5 percent would increase the NAICS manufacturing output index from 104.8218 in Dec 2007 to 194.7054 in Dec 2025. The NAICS index at 96.6977 in Jun 2025 is 50.3 percent below trend. The NAICS manufacturing output index grew at 1.7 percent annual equivalent from Dec 1999 to Dec 2006. Growth at 1.7 percent would raise the NAICS manufacturing output index from 104.8218 in Dec 2007 to 141.9805 in Dec 2025. The NAICS index at 96.6977 in Dec 2025 is 31.9 percent below trend under this alternative calculation.

Table IB-1, US, Percentage Change from Prior Month Seasonally Adjusted of Personal Income, Disposable Income and Personal Consumption Expenditures %

	NPI	NDPI	RDPI	NPCE	RPCE
Nov	0.3	0.3	0.1	0.5	0.3
AE ∆% Nov 2025	3.7	3.7	1.2	6.2	3.7
Oct	0.1	0.1	-0.1	0.5	0.3
AE ∆% Oct 2025	1.2	1.2	-1.2	6.2	3.7
Sep	0.4	0.3	0.1	0.4	0.1
Aug	0.4	0.4	0.1	0.6	0.3
Jul	0.5	0.4	0.3	0.7	0.5
AE ∆% Jul-Sep 2025	4.0	3.3	1.5	5.2	2.7
Jun	0.2	0.2	-0.1	0.5	0.3
AE ∆% Jun 2025	2.4	2.4	-1.2	6.2	3.7
May	-0.5	-0.7	-0.8	0.0	-0.1
AE ∆% May 2025	-4.7	-5.8	-8.1	0.0	-1.2
Apr	0.7	0.7	0.6	0.3	0.1
Mar	0.7	0.7	0.7	0.8	0.8
AE ∆% Mar-Apr 2025	10.0	10.0	9.4	6.8	5.5
Feb	0.5	0.5	0.1	0.3	-0.1
Jan	0.6	0.5	0.1	-0.3	-0.6
AE ∆% Jan-Feb 2025	6.8	6.2	1.2	0.0	-4.1
Dec 2024	0.4	0.4	0.1	1.0	0.7
Nov	0.4	0.3	0.2	0.4	0.3
AE ∆% Nov-Dec 2024	4.9	4.3	1.8	8.7	6.2
Oct	0.5	0.5	0.2	0.4	0.1
AE ∆% Oct 2024	6.2	6.2	2.4	4.9	1.2
Sep	0.4	0.3	0.1	0.7	0.5
Aug	0.2	0.2	0.1	0.3	0.1
Jul	0.2	0.1	0.0	0.5	0.4
Jun	0.4	0.4	0.2	0.4	0.3
AE ∆% Jun-Sep 2024	3.7	3.0	1.2	5.9	4.0
May	0.5	0.4	0.4	0.5	0.5
Apr	0.4	0.4	0.1	0.4	0.2
AE ∆% Apr-May 2024	5.5	4.9	3.0	5.5	4.3
Mar	0.5	0.5	0.1	0.7	0.3
Feb	0.5	0.4	0.1	0.7	0.4
AE ∆% Feb-Mar 2024	6.2	5.5	1.2	7.3	4.3
Jan	0.9	1.0	0.5	0.1	-0.4
AE ∆% Jan 2024	11.4	12.7	6.2	1.2	-4.7
Dec 2023	0.4	0.5	0.3	0.5	0.4
Nov	0.5	0.5	0.5	0.4	0.4
Oct	0.4	0.4	0.3	0.3	0.3
AE ∆% Dec-Oct	5.3	5.7	4.5	4.9	4.5
Sep	0.4	0.4	0.0	0.5	0.1
Aug	0.4	0.4	0.1	0.4	0.1
AE ∆% Aug-Sep	4.9	4.9	0.6	5.5	1.2
Jul	0.3	0.3	0.2	0.6	0.5
Jun	0.4	0.4	0.1	0.6	0.3
AE ∆% Jun-Jul	4.3	4.3	1.8	7.4	4.9
May	0.5	0.5	0.4	0.1	0.0
Apr	0.5	0.6	0.2	0.7	0.3
AE ∆% Apr-May	6.2	6.8	3.7	4.9	1.8
Mar	0.6	0.7	0.6	0.2	0.0
Feb	0.6	0.8	0.5	0.2	-0.1
AE ∆% Feb-Mar	7.4	9.4	6.8	2.4	-0.6
Jan	0.7	2.5	2.0	1.8	1.3
AE ∆% Jan	8.7	34.5	26.8	23.9	16.8
Dec 2022	0.4	0.6	0.5	0.0	-0.1
Nov	0.3	0.4	0.2	0.0	-0.3
AE ∆% Nov-Dec	4.3	6.2	4.3	0.0	-2.4
Oct	0.7	0.8	0.3	0.6	0.2
AE ∆% Oct	8.7	10.0	3.7	7.4	2.4
Sep	0.6	0.7	0.3	0.4	0.1
Aug	0.6	0.9	0.6	0.8	0.5
Jul	0.9	1.3	1.3	0.1	0.1
AE ∆% Jul-Sep	8.7	12.2	9.2	5.3	2.8
Jun	0.5	0.7	-0.2	1.0	0.1
May	0.4	0.5	-0.1	0.5	-0.1
AE ∆% May-Jun	5.5	7.4	-1.8	9.4	0.0
Apr	0.3	0.3	0.0	0.8	0.5
Mar	0.5	0.4	-0.5	1.4	0.5
Feb	0.7	0.6	0.0	0.7	0.1
AE ∆% Feb-Apr	6.2	5.3	-2.0	12.2	4.5
Jan	0.0	-1.9	-2.4	0.6	0.1
AE ∆% Jan	0.0	-20.6	-25.3	7.4	1.2
Dec 2021	0.3	0.2	-0.5	0.2	-0.4
AE ∆% Dec	3.7	2.4	-5.8	2.4	-4.7
Nov	0.5	0.4	-0.3	0.9	0.2
Oct	0.8	0.7	0.0	1.3	0.6
AE ∆% Oct-Nov	8.1	6.8	-1.8	14.0	4.9
Sep	-0.6	-0.8	-1.1	0.5	0.1
AE ∆% Sep	-7.0	-9.2	-12.4	6.2	1.2
Aug	0.2	0.2	-0.2	1.1	0.7
AE ∆% Aug	2.4	2.4	-2.4	14.0	8.7
Jul	1.1	1.1	0.7	0.3	-0.2
AE ∆% Jul	14.0	14.0	8.7	3.7	-2.4
Jun	0.2	0.0	-0.5	1.4	0.8
AE ∆% Jun	2.4	0.0	-5.8	18.2	10.0
May	-1.9	-2.4	-2.9	0.4	-0.2
Apr	-12.9	-14.7	-15.1	1.3	0.8
AE ∆% Apr-May	-61.1	-66.7	-68.6	10.7	3.6
Mar	20.8	23.5	22.9	4.8	4.3
AE ∆% Mar	865.6	1158.9	1087.5	75.5	65.7
Feb	-6.9	-7.9	-8.2	-0.6	-0.9
AE ∆% Feb	-57.6	-62.8	-64.2	-7.0	-10.3
Jan	10.6	11.4	11.0	1.7	1.3
Dec 2020	0.6	0.5	0.1	0.8	0.4
AE ∆% Dec-Jan	89.7	96.9	88.2	16.1	10.7
Nov	-0.7	-1.1	-1.2	-0.2	-0.3
Oct	0.0	-0.3	-0.4	0.4	0.3
AE ∆% Oct-Nov	-4.1	-8.1	-9.2	1.2	0.0
Sep	0.8	0.7	0.6	1.4	1.2
AE ∆% Sep	10.0	8.7	7.4	18.2	15.4
Aug	-3.0	-3.6	-3.8	1.1	0.8
AE ∆% Aug	-30.6	-35.6	-37.2	14.0	10.0
Jul	1.3	1.2	0.9	1.8	1.5
AE ∆% Jul	16.8	15.4	11.4	23.9	19.6
Jun	0.3	0.0	-0.3	5.8	5.4
May	-4.1	-4.9	-5.0	8.4	8.3
AE ∆% May-Jun	-20.8	-26.0	-27.8	1127.6	121.2
Apr	11.6	14.3	14.7	-11.3	-10.9
Mar	-1.7	-1.5	-1.2	-6.8	-6.6
AE ∆% Mar-Apr	74.3	103.7	111.8	-68.1	-67.0
Feb	0.5	0.4	0.4	-0.3	-0.3
Jan	1.2	1.2	1.0	0.6	0.5
AE ∆% Jan-Feb	10.7	10.0	8.7	1.8	1.2
Dec 2019	-0.2	-0.3	-0.5	0.4	0.2
Nov	0.4	0.4	0.3	0.6	0.5
Oct	0.4	0.3	0.1	0.2	0.0
AE ∆% Oct-Dec	2.4	1.6	-0.4	4.9	2.8
Sep	0.2	0.3	0.2	0.2	0.2
Aug	0.5	0.6	0.5	0.4	0.4
AE ∆% Aug-Sep	4.3	5.5	4.3	3.7	3.7
Jul	0.1	0.3	0.1	0.6	0.5
AE ∆% Jul	1.2	3.7	1.2	7.4	6.2
Jun	0.2	0.2	0.2	0.4	0.3
May	0.1	0.1	0.0	0.4	0.4
Apr	0.2	0.1	-0.2	0.3	0.0
AE ∆% Apr-Jun	2.0	1.6	0.0	4.5	2.8
Mar	0.4	0.3	0.0	0.9	0.7
Feb	0.4	0.3	0.2	0.2	0.0
AE ∆% Feb-Mar	4.9	3.7	1.2	6.8	4.3
Jan	0.4	0.1	0.2	0.2	0.3
AE ∆% Jan	4.9	1.2	2.4	2.4	3.7

Notes: *Excluding exceptional income gains in Nov and Dec 2012 because of anticipated tax increases in Jan 2013 ((page 2 at http://www.bea.gov/newsreleases/national/pi/2013/pdf/pi1212.pdf). ^a Excluding employee contributions for government social insurance (pages 1-2 at http://www.bea.gov/newsreleases/national/pi/2013/pdf/pi0113.pdf ) Excluding NPI: current dollars personal income; NDPI: current dollars disposable personal income; RDPI: chained (2005) dollars DPI; NPCE: current dollars personal consumption expenditures; RPCE: chained (2005) dollars PCE; AE: annual equivalent; IVQ2010: fourth quarter 2010; A: annual equivalent

Percentage change month to month seasonally adjusted

*∆% Dec 2011/Dec 2010 **∆% Dec 2010/Dec 2009 *** ∆% Dec 2012/Dec 2011

Source: US Bureau of Economic http://bea.gov/iTable/index_nipa.cfm

Table IB-1, US, Percentage Change from Prior Month Seasonally Adjusted of Personal Income, Disposable Income and Personal Consumption Expenditures %

	NPI	NDPI	RDPI	NPCE	RPCE
Nov	0.3	0.3	0.1	0.5	0.3
Oct	0.1	0.1	-0.1	0.5	0.3
Sep	0.4	0.3	0.1	0.4	0.1
AE ∆% Sep-Nov 2025	3.2	2.8	0.4	5.7	2.8
Aug	0.4	0.4	0.1	0.6	0.3
Jul	0.5	0.4	0.3	0.7	0.5
Jun	0.2	0.2	-0.1	0.5	0.3
AE ∆% Jun-Aug 2025	4.5	4.1	1.2	7.4	4.5
May	-0.5	-0.7	-0.8	0.0	-0.1
AE ∆% May 2025	-4.7	-5.8	-8.1	0.0	-1.2
Apr	0.7	0.7	0.6	0.3	0.1
Mar	0.7	0.7	0.7	0.8	0.8
AE ∆% Mar-Apr 2025	10.0	10.0	9.4	6.8	5.5
Feb	0.5	0.5	0.1	0.3	-0.1
Jan	0.6	0.5	0.1	-0.3	-0.6
AE ∆% Jan-Feb 2025	6.8	6.2	1.2	0.0	-4.1
Dec 2024	0.4	0.4	0.1	1.0	0.7
Nov	0.4	0.3	0.2	0.4	0.3
AE ∆% Nov-Dec 2024	4.9	4.3	1.8	8.7	6.2
Oct	0.5	0.5	0.2	0.4	0.1
AE ∆% Oct 2024	6.2	6.2	2.4	4.9	1.2
Sep	0.4	0.3	0.1	0.7	0.5
Aug	0.2	0.2	0.1	0.3	0.1
Jul	0.2	0.1	0.0	0.5	0.4
Jun	0.4	0.4	0.2	0.4	0.3
AE ∆% Jun-Sep 2024	3.7	3.0	1.2	5.9	4.0
May	0.5	0.4	0.4	0.5	0.5
Apr	0.4	0.4	0.1	0.4	0.2
AE ∆% Apr-May 2024	5.5	4.9	3.0	5.5	4.3
Mar	0.5	0.5	0.1	0.7	0.3
Feb	0.5	0.4	0.1	0.7	0.4
AE ∆% Feb-Mar 2024	6.2	5.5	1.2	7.3	4.3
Jan	0.9	1.0	0.5	0.1	-0.4
AE ∆% Jan 2024	11.4	12.7	6.2	1.2	-4.7
Dec 2023	0.4	0.5	0.3	0.5	0.4
Nov	0.5	0.5	0.5	0.4	0.4
Oct	0.4	0.4	0.3	0.3	0.3
AE ∆% Dec-Oct	5.3	5.7	4.5	4.9	4.5
Sep	0.4	0.4	0.0	0.5	0.1
Aug	0.4	0.4	0.1	0.4	0.1
AE ∆% Aug-Sep	4.9	4.9	0.6	5.5	1.2
Jul	0.3	0.3	0.2	0.6	0.5
Jun	0.4	0.4	0.1	0.6	0.3
AE ∆% Jun-Jul	4.3	4.3	1.8	7.4	4.9
May	0.5	0.5	0.4	0.1	0.0
Apr	0.5	0.6	0.2	0.7	0.3
AE ∆% Apr-May	6.2	6.8	3.7	4.9	1.8
Mar	0.6	0.7	0.6	0.2	0.0
Feb	0.6	0.8	0.5	0.2	-0.1
AE ∆% Feb-Mar	7.4	9.4	6.8	2.4	-0.6
Jan	0.7	2.5	2.0	1.8	1.3
AE ∆% Jan	8.7	34.5	26.8	23.9	16.8
Dec 2022	0.4	0.6	0.5	0.0	-0.1
Nov	0.3	0.4	0.2	0.0	-0.3
AE ∆% Nov-Dec	4.3	6.2	4.3	0.0	-2.4
Oct	0.7	0.8	0.3	0.6	0.2
AE ∆% Oct	8.7	10.0	3.7	7.4	2.4
Sep	0.6	0.7	0.3	0.4	0.1
Aug	0.6	0.9	0.6	0.8	0.5
Jul	0.9	1.3	1.3	0.1	0.1
AE ∆% Jul-Sep	8.7	12.2	9.2	5.3	2.8
Jun	0.5	0.7	-0.2	1.0	0.1
May	0.4	0.5	-0.1	0.5	-0.1
AE ∆% May-Jun	5.5	7.4	-1.8	9.4	0.0
Apr	0.3	0.3	0.0	0.8	0.5
Mar	0.5	0.4	-0.5	1.4	0.5
Feb	0.7	0.6	0.0	0.7	0.1
AE ∆% Feb-Apr	6.2	5.3	-2.0	12.2	4.5
Jan	0.0	-1.9	-2.4	0.6	0.1
AE ∆% Jan	0.0	-20.6	-25.3	7.4	1.2
Dec 2021	0.3	0.2	-0.5	0.2	-0.4
AE ∆% Dec	3.7	2.4	-5.8	2.4	-4.7
Nov	0.5	0.4	-0.3	0.9	0.2
Oct	0.8	0.7	0.0	1.3	0.6
AE ∆% Oct-Nov	8.1	6.8	-1.8	14.0	4.9
Sep	-0.6	-0.8	-1.1	0.5	0.1
AE ∆% Sep	-7.0	-9.2	-12.4	6.2	1.2
Aug	0.2	0.2	-0.2	1.1	0.7
AE ∆% Aug	2.4	2.4	-2.4	14.0	8.7
Jul	1.1	1.1	0.7	0.3	-0.2
AE ∆% Jul	14.0	14.0	8.7	3.7	-2.4
Jun	0.2	0.0	-0.5	1.4	0.8
AE ∆% Jun	2.4	0.0	-5.8	18.2	10.0
May	-1.9	-2.4	-2.9	0.4	-0.2
Apr	-12.9	-14.7	-15.1	1.3	0.8
AE ∆% Apr-May	-61.1	-66.7	-68.6	10.7	3.6
Mar	20.8	23.5	22.9	4.8	4.3
AE ∆% Mar	865.6	1158.9	1087.5	75.5	65.7
Feb	-6.9	-7.9	-8.2	-0.6	-0.9
AE ∆% Feb	-57.6	-62.8	-64.2	-7.0	-10.3
Jan	10.6	11.4	11.0	1.7	1.3
Dec 2020	0.6	0.5	0.1	0.8	0.4
AE ∆% Dec-Jan	89.7	96.9	88.2	16.1	10.7
Nov	-0.7	-1.1	-1.2	-0.2	-0.3
Oct	0.0	-0.3	-0.4	0.4	0.3
AE ∆% Oct-Nov	-4.1	-8.1	-9.2	1.2	0.0
Sep	0.8	0.7	0.6	1.4	1.2
AE ∆% Sep	10.0	8.7	7.4	18.2	15.4
Aug	-3.0	-3.6	-3.8	1.1	0.8
AE ∆% Aug	-30.6	-35.6	-37.2	14.0	10.0
Jul	1.3	1.2	0.9	1.8	1.5
AE ∆% Jul	16.8	15.4	11.4	23.9	19.6
Jun	0.3	0.0	-0.3	5.8	5.4
May	-4.1	-4.9	-5.0	8.4	8.3
AE ∆% May-Jun	-20.8	-26.0	-27.8	1127.6	121.2
Apr	11.6	14.3	14.7	-11.3	-10.9
Mar	-1.7	-1.5	-1.2	-6.8	-6.6
AE ∆% Mar-Apr	74.3	103.7	111.8	-68.1	-67.0
Feb	0.5	0.4	0.4	-0.3	-0.3
Jan	1.2	1.2	1.0	0.6	0.5
AE ∆% Jan-Feb	10.7	10.0	8.7	1.8	1.2
Dec 2019	-0.2	-0.3	-0.5	0.4	0.2
Nov	0.4	0.4	0.3	0.6	0.5
Oct	0.4	0.3	0.1	0.2	0.0
AE ∆% Oct-Dec	2.4	1.6	-0.4	4.9	2.8
Sep	0.2	0.3	0.2	0.2	0.2
Aug	0.5	0.6	0.5	0.4	0.4
AE ∆% Aug-Sep	4.3	5.5	4.3	3.7	3.7
Jul	0.1	0.3	0.1	0.6	0.5
AE ∆% Jul	1.2	3.7	1.2	7.4	6.2
Jun	0.2	0.2	0.2	0.4	0.3
May	0.1	0.1	0.0	0.4	0.4
Apr	0.2	0.1	-0.2	0.3	0.0
AE ∆% Apr-Jun	2.0	1.6	0.0	4.5	2.8
Mar	0.4	0.3	0.0	0.9	0.7
Feb	0.4	0.3	0.2	0.2	0.0
AE ∆% Feb-Mar	4.9	3.7	1.2	6.8	4.3
Jan	0.4	0.1	0.2	0.2	0.3
AE ∆% Jan	4.9	1.2	2.4	2.4	3.7

Notes: *Excluding exceptional income gains in Nov and Dec 2012 because of anticipated tax increases in Jan 2013 ((page 2 at http://www.bea.gov/newsreleases/national/pi/2013/pdf/pi1212.pdf). ^a Excluding employee contributions for government social insurance (pages 1-2 at http://www.bea.gov/newsreleases/national/pi/2013/pdf/pi0113.pdf ) Excluding NPI: current dollars personal income; NDPI: current dollars disposable personal income; RDPI: chained (2005) dollars DPI; NPCE: current dollars personal consumption expenditures; RPCE: chained (2005) dollars PCE; AE: annual equivalent; IVQ2010: fourth quarter 2010; A: annual equivalent

Percentage change month to month seasonally adjusted

*∆% Dec 2011/Dec 2010 **∆% Dec 2010/Dec 2009 *** ∆% Dec 2012/Dec 2011

Source: US Bureau of Economic http://bea.gov/iTable/index_nipa.cfm

Table IB-2 provides year on year growth of real disposable income and real personal consumption expenditures and segments. Real disposable income increased 1.0 percent in the 12 months ending in Nov 2025 in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 . The BEA explains as follows (https://www.bea.gov/sites/default/files/2026-01/pi10-1125.pdf): ” Personal income increased $30.6 billion (0.1 percent at a monthly rate) in October, followed by an

increase of $80.0 billion (0.3 percent) in November, according to estimates released today by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI)—personal income less personal current taxes—increased $12.0 billion (0.1 percent) in October, followed by an increase of $63.7 billion (0.3percent). Personal consumption expenditures (PCE) increased $98.6 billion (0.5 percent), followed by an increase of $108.7 billion (0.5 percent).

Due to the recent government shutdown, this report for October and November replaces releases

originally scheduled for November 26 and December 19, 2025. The increase in current-dollar personal income in October primarily reflected increases in compensation

and government social benefits that were partly offset by decreases in other current transfer receipts from business, farm proprietors' income, and personal dividend income. In November, the increase primarily reflected increases in compensation and personal dividend income. In October, the $98.6 billion increase in current-dollar PCE  reflected increases in both services

and goods. The increase in spending on services was led by financial services and insurance, health care, and housing and utilities. The increase in spending on goods was led by recreational goods and vehicles, other nondurable goods, and clothing and footwear. In November, the $108.7 billion increase in current-dollar PCE reflected increases in both services and goods.

In November, the $108.7 billion increase in current-dollar PCE reflected increases in both services and goods. From the preceding month, the PCE price index increased 0.2 percent in

both October and November. Excluding food and energy, the PCE price index also increased 0.2 percent. From the same month one year ago, the PCE price index increased 2.7percent in October, followed by an increase of 2.8 percent in November.

Excluding food and energy, the PCE price index also increased 2.7 percent followed by an increase of 2.8 percent in both months. (Refer to “Technical

Notes” below for information on how BEA imputed missing BLS October prices.)

Table IB-2, Real Disposable Personal Income and Real Personal Consumption Expenditures

Percentage Change from the Same Month a Year Earlier %

	RDPI	RPCE	RPCEG	RPCEGD	RPCES
2025
Nov	1.0	2.6	2.5	1.1	2.6
Oct	1.2	2.6	2.5	2.2	2.6
Sep	1.5	2.4	2.2	2.3	2.5
Aug	1.5	2.8	3.8	3.9	2.3
Jul	1.5	2.6	3.2	3.4	2.4
Jun	1.2	2.5	3.4	3.5	2.1
May	1.5	2.5	3.1	3.6	2.2
Apr	2.8	3.1	5.0	7.8	2.3
Mar	2.3	3.2	5.3	8.6	2.2
Feb	1.8	2.7	4.4	4.7	2.0
Jan	1.8	3.3	4.2	5.6	2.9
2024
Dec	2.2	3.6	5.0	8.6	2.9
Nov	2.4	3.2	4.0	7.0	2.9
Oct	2.7	3.3	3.6	5.3	3.1
Sep	2.8	3.4	3.6	4.4	3.4
Aug	2.8	3.0	2.5	3.2	3.3
Jul	2.9	3.0	3.0	3.8	3.0
Jun	3.1	3.1	2.9	3.8	3.2
May	3.0	3.1	3.1	4.2	3.1
Apr	2.9	2.6	1.9	1.9	2.9
Mar	3.0	2.7	2.7	2.9	2.7
Feb	3.5	2.4	0.9	1.7	3.1
Jan	4.0	1.9	0.5	-0.5	2.5
2023
Dec	5.5	3.6	4.7	8.0	3.0
Nov	5.6	3.1	3.7	6.4	2.7
Oct	5.3	2.4	2.1	3.3	2.6
Sep	5.2	2.3	2.3	4.9	2.3
Aug	5.5	2.3	2.1	4.1	2.3
Jul	6.0	2.8	2.6	4.7	2.8
Jun	7.2	2.4	1.3	3.8	2.9
May	6.8	2.1	0.6	3.3	2.9
Apr	6.3	2.0	0.0	0.8	3.0
Mar	6.0	2.2	-0.3	1.2	3.5
Feb	4.9	2.7	1.1	3.1	3.6
Jan	4.3	2.9	0.5	2.5	4.2
2022
Dec	-0.2	1.6	-1.8	-2.0	3.4
Nov	-1.1	1.3	-2.5	-3.3	3.3
Oct	-1.5	1.8	-1.0	-0.5	3.3
Sep	-1.8	2.3	-0.3	0.9	3.6
Aug	-3.2	2.3	-0.4	1.4	3.7
Jul	-4.0	2.5	-0.4	0.1	4.0
Jun	-4.6	2.2	-2.0	-3.6	4.5
May	-4.8	3.0	-1.4	-5.2	5.4
Apr	-7.4	3.0	-2.6	-7.3	6.0
Mar	-21.4	3.2	-3.0	-8.4	6.6
Feb	-2.9	7.1	5.1	3.4	8.2
Jan	-10.9	6.1	3.6	2.0	7.4
2021
Dec	1.3	7.4	5.3	3.2	8.4
Nov	1.9	8.2	7.5	7.0	8.6
Oct	1.0	7.7	6.9	6.4	8.1
Sep	0.6	7.3	5.4	4.0	8.3
Aug	2.3	8.5	7.0	4.6	9.3
Jul	-1.5	8.7	6.1	5.4	10.0
Jun	-1.2	10.5	10.4	12.3	10.5
May	-1.1	15.6	16.3	24.9	15.2
Apr	-3.3	25.4	36.7	70.9	20.1
Mar	30.7	10.8	20.3	50.5	6.2
Feb	5.0	-0.8	8.5	15.1	-4.9
Jan	14.8	-0.2	11.2	18.5	-5.3
2020
Dec	4.6	-1.0	8.4	14.0	-5.2
Nov	3.9	-1.2	7.6	12.6	-5.2
Oct	5.4	-0.4	8.9	15.6	-4.6
Sep	6.0	-0.7	8.9	13.8	-5.1
Aug	5.6	-1.8	7.4	14.4	-5.9
Jul	10.4	-2.2	7.9	14.4	-6.8
Jun	9.6	-3.2	6.7	12.2	-7.7
May	10.2	-7.9	1.5	3.0	-12.2
Apr	16.0	-14.7	-11.0	19.2	-16.3
Mar	0.9	-4.2	1.0	-8.8	-6.5
Feb	2.2	3.3	4.2	7.1	2.9
Jan	2.0	3.7	4.1	7.8	3.5
2019
Dec	1.1	3.5	5.3	7.8	2.7
Nov	2.9	2.5	2.6	3.8	2.4
Oct	2.9	2.5	3.5	4.2	2.0
Sep	3.0	2.8	4.1	5.4	2.1
Aug	2.8	2.4	4.0	4.0	1.7
Jul	2.6	2.2	3.9	4.2	1.5
Jun	2.9	2.0	3.7	3.4	1.2
May	3.2	1.7	2.5	2.9	1.4
Apr	3.5	1.7	2.8	2.5	1.2
Mar	4.0	1.8	2.4	2.3	1.5
Feb	4.3	1.3	0.9	-0.7	1.5
Jan	4.4	1.3	1.1	0.1	1.4

Notes: RDPI: real disposable personal income; RPCE: real personal consumption expenditures (PCE); RPCEG: real PCE goods; RPCEGD: RPCEG durable goods; RPCES: RPCE services

Numbers are percentage changes from the same month a year earlier

Source: US Bureau of Economic Analysis https://apps.bea.gov/iTable/index_nipa.cfm

Chart IB-1 shows US real personal consumption expenditures (RPCE) from 2007 to 2025. There is an evident drop in RPCE during the global recession in 2007 to 2009 but the slope is flatter during the current recovery than in the period before 2007 with recent recovery. The data point in IIQ2020 shows sharp drop in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021) with sharp recovery in IIIQ2020 and milder recovery in IVQ2020. Recovery gained strength in IQ2021-IIQ2021, IIIQ2021 and IVQ2021. There is slower growth in IQ2022, IIQ2022, IIIQ2022 and IVQ2022. Growth strengthens in IQ2023, IIQ2023, IIIQ2023, IVQ2023, IQ2024, IIQ2024, IIIQ2024, IVQ2024, slowing in IQ2025, improving in IIQ2025 and IIIQ2025.

Chart IB-1, US, Real Personal Consumption Expenditures, Quarterly Seasonally Adjusted at Annual Rates 2007-2025

Source: US Bureau of Economic Analysis

https://apps.bea.gov/iTable/index_nipa.cfm

Percent changes from the prior period in seasonally adjusted annual equivalent quarterly rates (SAAR) of real personal consumption expenditures (RPCE) are in Chart IB-2 from 1995 to 2025. The average rate could be visualized as a horizontal line. Although there are not yet sufficient observations, it appears from Chart IB-2 that the average rate of growth of RPCE was higher before the recession than during the sixty-four quarters of expansion that began in IIIQ2009. The data point in IIQ2020 shows sharp contraction in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021) followed by sharp recovery in IIIQ2020, milder recovery in IVQ2020 followed by stronger recovery in IQ2021-IIQ2021, slowing in IIIQ2021, IVQ2021, IQ2022, IIQ2022, IIIQ2022 and IVQ2022. Growth strengthens in IQ2023, slows in IIQ2023 and strengthens in IIIQ2023 and IVQ2023 slowing in IQ2024, strengthening in IIQ2024, IIIQ2024 and IVQ024, weakening in IQ2025, improving in IIQ2025 and improving in IIIQ2025.

Chart IB-2, Percent Change from Prior Period in Real Personal Consumption Expenditures, Quarterly Seasonally Adjusted at Annual Rates 1995-2025

Source: US Bureau of Economic Analysis

https://apps.bea.gov/iTable/index_nipa.cfm

Table IB-4 provides growth rates of real disposable income and real disposable income per capita in the long-term and selected periods. Real disposable income consists of after-tax income adjusted for inflation. Real disposable income per capita is income per person after taxes and inflation. There is remarkable long-term trend of growth of real disposable income of 3.2 percent per year on average from 1929 to 2019 and 2.0 percent in real disposable income per capita. Real disposable income increased at the average yearly rate of 3.6 percent from 1947 to 1999 and real disposable income per capita at 2.3 percent. These rates of increase broadly accompany rates of growth of GDP. Institutional arrangements in the United States provided the environment for growth of output and income after taxes, inflation and population growth. There is significant break of growth by much lower 2.5 percent for real disposable income on average from 1999 to 2019 and 1.6 percent in real disposable per capita income. Real disposable income grew at 3.5 percent from 1980 to 1989 and real disposable per capita income at 2.5 percent. In contrast, real disposable income grew at only 2.2 percent on average from 2006 to 2019 and real disposable income per capita at 1.4 percent. Real disposable income grew at 2.2 percent from 2007 to 2019 and real disposable income per capita at 1.4 percent. The United States has interrupted its long-term and cyclical dynamism of output, income and employment growth. Recovery of this dynamism could prove to be a major challenge. Cyclical uncommonly slow growth explains weakness in the global recession whole cycle instead of the allegation of secular stagnation. Real disposable income increased 6.4 percent from 2019 to 2020 and 3.9 percent from 2020 to 2021 while real disposable income per capita increased 5.9 percent from 2019 to 2020 and 3.7 percent from 2020 to 2021 in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021). Real disposable income decreased 5.6 percent from 2021 to 2022 while real disposable income per capita decreased 6.1 percent. Real disposable income increased 5.7 percent from 2022 to 2023 while real disposable income per capita increased 4.8 percent. Real disposable income increased 2.9 percent from 2023 to 2024 while real disposable income per capita increased 2.0 percent.

Table IB-4, Average Annual Growth Rates of Real Disposable Income (RDPI) and Real Disposable Income per Capita (RDPIPC), Percent per Year 

RDPI Average ∆%
1929-2019	3.2
1929-2024	3.1
1947-1999	3.6
1999-2019	2.5
1999-2024	2.5
1999-2006	3.1
1980-1989	3.5
2006-2019	2.2
2006-2024	2.3
2007-2019	2.2
2007-2024	2.3
2019-2020*	6.4
2020-2021*	3.9
2021-2022*	-5.6
2022-2023*	5.7
2023-2024*	2.9
RDPIPC Average ∆%
1929-2019	2.0
1929-2024	2.0
1947-1999	2.3
1999-2019	1.6
1999-2024	1.7
1999-2006	2.1
1980-1989	2.5
2006-2019	1.4
2006-2024	1.6
2007-2019	1.4
2007-2024	1.6
2019-2020*	5.9
2020-2021*	3.7
2021-2022*	-6.1
2022-2023*	4.8
2023-2024*	2.0

Note: *Absolute percentage change

Source: Bureau of Economic Analysis https://apps.bea.gov/iTable/index_nipa.cfm

IA2 Financial Repression. McKinnon (1973) and Shaw (1974) argue that legal restrictions on financial institutions can be detrimental to economic development. “Financial repression” is the term used in the economic literature for these restrictions (see Pelaez and Pelaez, Globalization and the State, Vol. II (2008b), 81-6; for historical analysis see the landmark exhaustive research by Summerhill (2015) and earlier research by Pelaez (1975)). Theory and evidence support the role of financial institutions in efficiency and growth (Pelaez and Pelaez, Financial Regulation after the Global Recession (2009a), 22-6, Pelaez and Pelaez, Regulation of Banks and Finance (2009b), 37-44). Excessive official regulation frustrates financial development required for growth (Haber 2011). Emphasis on disclosure can reduce bank fragility and corruption, empowering investors to enforce sound governance (Barth, Caprio and Levine 2006). Banking was important in facilitating economic growth in historical periods (Cameron 1961, 1967, 1972; Cameron et al. 1992). Banking is also important currently because small- and medium-size business may have no other form of financing than banks in contrast with many options for larger and more mature companies that have access to capital markets. Calomiris and Haber (2014) find that broad voting rights and institutions restricting coalitions of bankers and populists ensure stable banking systems and access to credit. Summerhill (2015) contributes momentous solid facts and analysis with an ideal method combining economic theory, econometrics, international comparisons, data reconstruction and exhaustive archival research. Summerhill (2015) finds that Brazil committed to service of sovereign foreign and internal debt. Contrary to conventional wisdom, Brazil generated primary fiscal surpluses during most of the Empire until 1889 (Summerhill 2015, 37-8, Figure 2.1). Econometric tests by Summerhill (2015, 19-44) show that Brazil’s sovereign debt was sustainable. Sovereign credibility in the North-Weingast (1989) sense spread to financial development that provided the capital for modernization in England and parts of Europe (see Cameron 1961, 1967). Summerhill (2015, 3,194-6, Figure 7.1) finds that “Brazil’s annual cost of capital in London fell from a peak of 13.9 percent in 1829 to only 5.12 percent in 1889. Average rates on secured loans in the private sector in Rio, however, remained well above 12 percent through 1850.” Financial development would have financed diversification of economic activities, increasing productivity and wages and ensuring economic growth. Brazil restricted creation of limited liability enterprises (Summerhill 2015, 151-82) that prevented raising capital with issue of stocks and corporate bonds. Cameron (1961) analyzed how the industrial revolution in England spread to France and then to the rest of Europe. The Société Générale de Crédit Mobilier of Émile and Isaac Péreire provided the “mobilization of credit” for the new economic activities (Cameron 1961). Summerhill (2015, 151-9) provides facts and analysis demonstrating that regulation prevented the creation of a similar vehicle for financing modernization by Irineu Evangelista de Souza, the legendary Visconde de Mauá. Regulation also prevented the use of negotiable bearing notes of the Caisse Générale of Jacques Lafitte (Cameron 1961, 118-9). The government also restricted establishment and independent operation of banks (Summerhill 2015, 183-214). Summerhill (2015, 198-9) measures concentration in banking that provided economic rents or a social loss. The facts and analysis of Summerhill (2015) provide convincing evidence in support of the economic theory of regulation, which postulates that regulated entities capture the process of regulation to promote their self-interest. There appears to be a case that excessively centralized government can result in regulation favoring private instead of public interests with adverse effects on economic activity. The contribution of Summerhill (2015) explains why Brazil did not benefit from trade as an engine of growth—as did regions of recent settlement in the vision of nineteenth-century trade and development of Ragnar Nurkse (1959)—partly because of restrictions on financing and incorporation. Interest rate ceilings on deposits and loans have been commonly used. Professor Rondo E. Cameron, in his memorable A Concise Economic History of the World (Cameron 1989, 307-8), finds that “from a broad spectrum of possible forms of interaction between the financial sector and other sectors of the economy that requires its services, one can isolate three type-cases: (1) that in which the financial sector plays a positive, growth-inducing role; (2) that in which the financial sector is essentially neutral or merely permissive; and (3) that in which inadequate finance restricts or hinders industrial and commercial development.” Summerhill (1985) proves exhaustively that Brazil failed to modernize earlier because of the restrictions of an inadequate institutional financial arrangement plagued by regulatory capture for self-interest. The Banking Act of 1933 imposed prohibition of payment of interest on demand deposits and ceilings on interest rates on time deposits. These measures were justified by arguments that the banking panic of the 1930s was caused by competitive rates on bank deposits that led banks to engage in high-risk loans (Friedman, 1970, 18; see Pelaez and Pelaez, Regulation of Banks and Finance (2009b), 74-5). The objective of policy was to prevent unsound loans in banks. Savings and loan institutions complained of unfair competition from commercial banks that led to continuing controls with the objective of directing savings toward residential construction. Friedman (1970, 15) argues that controls were passive during periods when rates implied on demand deposit were zero or lower and when Regulation Q ceilings on time deposits were above market rates on time deposits. The Great Inflation or stagflation of the 1960s and 1970s changed the relevance of Regulation Q.

Most regulatory actions trigger compensatory measures by the private sector that result in outcomes that are different from those intended by regulation (Kydland and Prescott 1977). Banks offered services to their customers and loans at rates lower than market rates to compensate for the prohibition to pay interest on demand deposits (Friedman 1970, 24). The prohibition of interest on demand deposits was eventually lifted in recent times. In the second half of the 1960s, already in the beginning of the Great Inflation (DeLong 1997), market rates rose above the ceilings of Regulation Q because of higher inflation. Nobody desires savings allocated to time or savings deposits that pay less than expected inflation. This is a fact currently with still low nominal interest rates, 3½ to 3 ¾  percent, and consumer price inflation of 2.7 percent in the 12 months ending in Dec 2025 (https://www.bls.gov/cpi/) but rising during waves of carry trades from zero interest rates to commodity futures exposures (https://cmpassocregulationblog.blogspot.com/2022/04/inflation-accelerating-worldwide.html and earlier https://cmpassocregulationblog.blogspot.com/2022/03/accelerating-inflation-throughout-world.html). Funding problems motivated compensatory measures by banks. Money-center banks developed the large certificate of deposit (CD) to accommodate increasing volumes of loan demand by customers. As Friedman (1970, 25) finds: 

“Large negotiable CD’s were particularly hard hit by the interest rate ceiling because they are deposits of financially sophisticated individuals and institutions who have many alternatives. As already noted, they declined from a peak of $24 billion in mid-December, 1968, to less than $12 billion in early October, 1969.”

Banks created different liabilities to compensate for the decline in CDs. As Friedman (1970, 25; 1969) explains:

“The most important single replacement was almost surely ‘liabilities of US banks to foreign branches.’ Prevented from paying a market interest rate on liabilities of home offices in the United States (except to foreign official institutions that are exempt from Regulation Q), the major US banks discovered that they could do so by using the Euro-dollar market. Their European branches could accept time deposits, either on book account or as negotiable CD’s at whatever rate was required to attract them and match them on the asset side of their balance sheet with ‘due from head office.’ The head office could substitute the liability ‘due to foreign branches’ for the liability ‘due on CDs.”

Friedman (1970, 26-7) predicted the future:

“The banks have been forced into costly structural readjustments, the European banking system has been given an unnecessary competitive advantage, and London has been artificially strengthened as a financial center at the expense of New York.”

In short, Depression regulation exported the US financial system to London and offshore centers. What is vividly relevant currently from this experience is the argument by Friedman (1970, 27) that the controls affected the most people with lower incomes and wealth who were forced into accepting controlled rates on their savings that were lower than those that would be obtained under freer markets. As Friedman (1970, 27) argues:

“These are the people who have the fewest alternative ways to invest their limited assets and are least sophisticated about the alternatives.”

Chart IB-14 of the Bureau of Economic Analysis (BEA) provides quarterly savings as percent of disposable income or the US savings rate from 1980 to 2025. There was a long-term downward sloping trend from 12 percent in the early 1980s to 4.6 percent in Aug 2005. The savings rate then rose during the contraction and in the expansion. In 2011 and into 2012 the savings rate declined as consumption is financed with savings in part because of the disincentive or frustration of receiving a few pennies for every $10,000 of deposits in a bank. The savings rate increased in the final segment of Chart IB-14 in 2012 because of the “fiscal cliff” episode followed by another decline because of the pain of the opportunity cost of zero remuneration for hard-earned savings. There are multiple recent oscillations during expectations of increase or “liftoff” of the fed funds rate in the United States followed by “shallow” or uncertain monetary policy with increase in policy interest rates and reduction of the balance sheet of the Fed. The savings rate increased in the final segment with the annual revisions of 2019 and 2020. The savings rate jumped followed by decline in the lockdown of economic activity of the COVID-19 event. The BEA explains as follows (https://www.bea.gov/sites/default/files/2026-01/pi10-1125.pdf): “Personal income increased $30.6 billion (0.1 percent at a monthly rate) in October, followed by an  increase of $80.0 billion (0.3 percent) in November, according to estimates released today by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI)personal income less personal current taxes—increased $12.0 billion (0.1 percent) in October, followed by an increase of $63.7 billion (0.3

percent). Personal consumption expenditures (PCE) increased $98.6 billion (0.5 percent), followed by an increase of $108.7 billion (0.5 percent). From the preceding month, the PCE

price index increased 0.2 percent in both October and November. Excluding food and energy, the PCE price index also increased 0.2 percent in both months. (Refer to “Technical

Notes” below for information on how BEA imputed missing BLS October prices. From the same month one year ago, the PCE price index increased 2.7percent in October, followed by an

increase of 2.8 percent in November. Excluding food and energy, the PCE price index also increased 2.7 percent followed by an increase of 2.8 percent.)”

Chart IB-14, US, Personal Savings as a Percentage of Disposable Personal Income, Quarterly, 1980-2025

Source: US Bureau of Economic Analysis

https://apps.bea.gov/iTable/index_nipa.cfm

Chart IB-14A provides the US personal savings rate, or personal savings as percent of disposable personal income, on an annual basis from 1929 to 2024. The US savings rate shows decline from around 10 percent in the 1960s to 4.3 percent in Dec 2024. There is sharp increase in the global recession, with output in the US reaching a high in Feb 2020 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), in the lockdown of economic activity in the COVID-19 event.

Chart IB-14A, US, Personal Savings as a Percentage of Disposable Personal Income, Annual, 1929-2024

Source: US Bureau of Economic Analysis

https://apps.bea.gov/iTable/index_nipa.cfm

Chart IB-15 provides the ratio of savings to personal disposable income, or savings ratio, from Jan 2007 to Sep 2025. The savings rate jumped to 12.4 percent in Mar 2020 and 31.8 percent in Apr 2020, decreasing to 22.6 percent in May 2020, 18.3 percent in Jun 2020, 17.9 percent in Jul 2020, 13.9 percent in Aug 2020, 13.3 percent in Sep 2020, 12.8 percent in Oct 2020, 12.0 percent in Nov 2020, 11.8 in Dec 2020, 19.5 in Jan 2021, 13.0 percent in Feb 2021, 26.2 percent in Mar 2021, 12.4 percent in Apr 2021, 10.0 percent in May 2021, 8.8 percent in Jun 2021, 9.5 percent in Jul 2021, 8.7 percent in Aug 2021, 7.6 in Sep 2021, 7.0 percent in Oct 2021, 6.6 percent in Nov 2021, 6.6 percent in Dec 2021, 4.2 percent in Jan 2022, 4.1 percent in Feb 2022, 3.2 percent in Mar 2022, 2.6 percent in Apr 2022, 2.6 percent in May 2022, 2.2 percent in Jun 2022, 3.3 percent in Jul 2022, 3.2 percent in Aug 2022, 3.4 percent in Sep 2022, 3.4 percent in Oct 2022. 3.8 percent in Nov 2022, 4.2 percent in Dec 2022, 4.9 percent in Jan 2023, 5.5 percent in Feb 2023, 6.0 percent in Mar 2023, 5.8 percent in Apr 2023, 6.1 percent in May 2023, 5.8 percent in Jun 2023, 5.5 percent in Jul 2023, 5.6 percent in Aug 2023, 5.3 percent in Sep 2023, 5.4 percent in Oct 2023, 5.6 percent in Nov 2023, 5.6 percent in Dec 2023, 6.4 percent in Jan 2024, 6.1 percent in Feb 2024, 5.9 percent in Mar 2024, 5.8 percent in Apr 2024, 5.8 percent in May 2024, 5.7 percent in Jun 2024, 5.3 percent in Jul 2024, 5.2 percent in Aug 2024, 4.8 percent in Sep 2024, 5.0 percent in Oct 2024, 4.9 percent in Nov 2024, 4.3 percent in Dec 2024, 5.1 percent in Jan 2025, 5.2 percent in Feb 2025, 5.1 percent in Mar 2025, 5.5 percent in Apr 2025, 4.9 percent in May 2025, 4.6 percent in Jun 2025, 4.3 percent in Jul 2025, 4.1 percent in Aug, 4.0 percent in Sep 2025, 3.7 percent in Oct 2025 and 3.5 percent in Nov 2025 during government social transfers in the global recession, with output in the US reaching a high in Feb 2020 and 2.9 percent in Jul 2024 (https://www.nber.org/research/data/us-business-cycle-expansions-and-contractions), in the lockdown of economic activity in the COVID-19 event and the trough in Apr 2020 (https://www.nber.org/news/business-cycle-dating-committee-announcement-july-19-2021), in the lockdown of economic activity in the COVID-19 event. The BEA explains as follows: “Personal income increased $30.6 billion (0.1 percent at a monthly rate) in October, followed by an increase of $80.0 billion (0.3 percent) in November, according to estimates released today by the U.S. Bureau of Economic Analysis. Disposable personal income (DPI)—personal income less personal current taxes—increased $12.0 billion (0.1 percent) in October, followed by an increase of $63.7 billion (0.3percent). Personal consumption expenditures (PCE) increased $98.6 billion (0.5 percent), followed by an increase of $108.7 billion (0.5 percent).” There is further explanation:

(https://www.bea.gov/sites/default/files/2020-12/pi1120.pdf https://www.bea.gov/sites/default/files/2021-01/pi1220.pdf https://www.bea.gov/sites/default/files/2021-02/pi0121.pdf https://www.bea.gov/sites/default/files/2021-03/pi0221.pdf https://www.bea.gov/sites/default/files/2021-04/pi0321.pdf https://www.bea.gov/sites/default/files/2021-05/pi0421.pdf https://www.bea.gov/sites/default/files/2021-06/pi0521.pdf https://www.bea.gov/sites/default/files/2021-07/pi0621.pdf https://www.bea.gov/sites/default/files/2021-08/pi0721.pdf https://www.bea.gov/sites/default/files/2021-10/pi0821.pdf https://www.bea.gov/sites/default/files/2021-10/pi0921.pdf https://www.bea.gov/sites/default/files/2021-11/pi1021.pdf https://www.bea.gov/sites/default/files/2021-12/pi1121.pdf https://www.bea.gov/sites/default/files/2022-01/pi1221.pdf https://www.bea.gov/sites/default/files/2022-02/pi0122.pdf https://www.bea.gov/sites/default/files/2022-03/pi0222.pdf https://www.bea.gov/sites/default/files/2022-05/pi0422.pdf https://www.bea.gov/sites/default/files/2022-06/pi0522.pdf https://www.bea.gov/sites/default/files/2022-07/pi0622.pdf https://www.bea.gov/sites/default/files/2022-08/pi0722.pdf https://www.bea.gov/sites/default/files/2022-09/pi0822.pdf https://www.bea.gov/sites/default/files/2022-10/pi0922.pdf https://www.bea.gov/sites/default/files/2022-12/pi1022.pdf https://www.bea.gov/sites/default/files/2022-12/pi1122.pdf https://www.bea.gov/sites/default/files/2023-01/pi1222.pdf https://www.bea.gov/sites/default/files/2023-02/pi0123.pdfhttps://www.bea.gov/sites/default/files/2023-03/pi0223.pdf https://www.bea.gov/sites/default/files/2023-04/pi0323_0.pdf https://www.bea.gov/sites/default/files/2023-05/pi0423.pdf https://www.bea.gov/sites/default/files/2023-06/pi0523.pdf https://www.bea.gov/sites/default/files/2023-08/pi0723.pdf https://www.bea.gov/sites/default/files/2023-09/pi0823.pdf https://www.bea.gov/sites/default/files/2023-10/pi0923.pdf https://www.bea.gov/sites/default/files/2023-11/pi1023.pdf https://www.bea.gov/sites/default/files/2023-12/pi1123.pdf https://www.bea.gov/sites/default/files/2024-01/pi1223.pdf https://www.bea.gov/sites/default/files/2024-02/pi0124.pdf https://www.bea.gov/sites/default/files/2024-03/pi0224.pdf https://www.bea.gov/sites/default/files/2024-04/pi0324.pdf https://www.bea.gov/sites/default/files/2024-05/pi0424.pdf https://www.bea.gov/sites/default/files/2024-06/pi0524.pdf https://www.bea.gov/sites/default/files/2024-07/pi0624.pdf https://www.bea.gov/sites/default/files/2024-08/pi0724.pdf https://www.bea.gov/sites/default/files/2024-09/pi0824.pdf https://www.bea.gov/sites/default/files/2024-10/pi0924.pdf https://www.bea.gov/sites/default/files/2024-11/pi1024.pdf https://www.bea.gov/sites/default/files/2024-12/pi1124.pdf  https://www.bea.gov/sites/default/files/2025-01/pi1224.pdf  https://www.bea.gov/sites/default/files/2025-03/pi0225.pdf https://www.bea.gov/sites/default/files/2025-04/pi0325.pdf https://www.bea.gov/sites/default/files/2025-05/pi0425.pdf

https://www.bea.gov/sites/default/files/2025-06/pi0525.pdf

https://www.bea.gov/sites/default/files/2025-07/pi0625.pdf  https://www.bea.gov/sites/default/files/2025-08/pi0725.pdf https://www.bea.gov/sites/default/files/2025-09/pi0825.pdf https://www.bea.gov/sites/default/files/2025-12/pi0925.pdf

https://www.bea.gov/sites/default/files/2026-01/pi10-1125.pdf )

Chart IB-15, US, Personal Savings as a Percentage of Disposable Income, Monthly 2007-2025

Source: US Bureau of Economic Analysis

https://apps.bea.gov/iTable/index_nipa.cfm

IV-6. Prices of PCE increased from 1.4 percent relative to a year earlier in Jan 2019 to 1.8 percent in Jan 2020, increasing to 2.8 percent in the 12 months ending in Nov 2025. The price indicator of monetary policy is the 12-month change of prices of personal consumption excluding food and energy (PCE). The goal of monetary policy was to maintain the 12-month change of PCEX at or below 2.0 percent. On Aug 22, 2025, the Federal Open Market Committee changed its Longer-Run Goals and Monetary Policy Strategy, including the following (https://www.federalreserve.gov/monetarypolicy/monetary-policy-strategy-tools-and-communications-statement-on-longer-run-goals-monetary-policy-strategy-2025.htm): “Durably achieving maximum employment fosters broad-based economic opportunities and benefits for all Americans. The Committee views maximum employment as the highest level of employment that can be achieved on a sustained basis in a context of price stability. The maximum level of employment is not directly measurable and changes over time owing largely to nonmonetary factors that affect the structure and dynamics of the labor market. Consequently, it would not be appropriate to specify a fixed goal for employment; rather, the Committee's policy decisions must be informed by assessments of the maximum level of employment, recognizing that such assessments are necessarily uncertain and subject to revision. The Committee considers a wide range of indicators in making these assessments.

Price stability is essential for a sound and stable economy and supports the well-being of all Americans. The inflation rate over the longer run is primarily determined by monetary policy, and hence the Committee can specify a longer-run goal for inflation. The Committee reaffirms its judgment that inflation at the rate of 2 percent, as measured by the annual change in the price index for personal consumption expenditures, is most consistent over the longer run with the Federal Reserve's statutory maximum employment and price stability mandates. The Committee judges that longer-term inflation expectations that are well anchored at 2 percent foster price stability and moderate long-term interest rates and enhance the Committee's ability to promote maximum employment in the face of significant economic disturbances. The Committee is prepared to act forcefully to ensure that longer-term inflation expectations remain well anchored.” emphasis added). “Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate.

In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

The statement of the FOMC at the conclusion of its meeting on Dec 12, 2012, revealed policy intentions (http://www.federalreserve.gov/newsevents/press/monetary/20121212a.htm). The FOMC updated in the statement at its meeting on Dec 16, 2015 with maintenance of the current level of the balance sheet and liftoff of interest rates (http://www.federalreserve.gov/newsevents/press/monetary/20151216a.htm) followed by the statement of Jan 28, 2026 (https://www.federalreserve.gov/newsevents/pressreleases/monetary20260128a.htm):

 “Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate.

In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Beth M. Hammack; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Anna Paulson. Voting against this action were Stephen I. Miran and Christopher J. Waller, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting.

For media inquiries, please email media@frb.gov or call 202-452-2955.

Implementation Note issued January 28, 2026“

 

The change of PCEX in 12 months increased from 1.0 percent in Apr 2020 to 2.8 percent in Nov 2025, higher than the target of monetary policy of 2 percent.

Table IV-6, US, Percentage Change in 12 Months of Prices of Personal Consumption

Expenditures ∆%

	PCE	PCEG	PCEG -D	PCES	PCEX	PCEF	PCEE
2025
Nov	2.8	1.4	1.2	3.4	2.8	1.9	4.1
Oct	2.7	1.3	1.0	3.3	2.7	2.2	2.2
Sep	2.8	1.4	0.9	3.4	2.8	2.4	2.7
Aug	2.7	0.9	1.2	3.6	2.9	2.2	-0.1
Jul	2.6	0.6	1.1	3.6	2.9	1.8	-1.9
Jun	2.6	0.6	1.0	3.5	2.8	2.0	-1.3
May	2.5	0.1	0.5	3.6	2.8	1.8	-3.8
Apr	2.3	-0.3	-0.4	3.5	2.6	1.7	-4.2
Mar	2.4	-0.3	-1.1	3.6	2.7	1.9	-3.8
Feb	2.7	0.3	-1.0	3.8	3.0	1.4	-0.6
Jan	2.6	0.5	-1.2	3.6	2.8	1.6	0.7
2024
Dec	2.7	-0.1	-1.3	4.0	3.0	1.6	-1.0
Nov	2.6	-0.4	-1.2	4.0	3.0	1.4	-4.0
Oct	2.5	-1.0	-1.7	4.1	3.0	1.0	-6.0
Sep	2.3	-1.2	-1.8	3.9	2.8	1.2	-8.1
Aug	2.4	-0.9	-2.1	4.0	2.9	1.1	-5.0
Jul	2.6	-0.2	-2.4	3.9	2.8	1.2	0.4
Jun	2.5	-0.4	-2.8	4.0	2.8	1.3	0.4
May	2.7	-0.3	-3.1	4.1	2.8	1.2	3.0
Apr	2.8	0.0	-2.1	4.2	3.0	1.3	1.8
Mar	2.9	0.0	-1.9	4.3	3.1	1.5	1.4
Feb	2.7	-0.3	-2.1	4.2	3.1	1.4	-2.2
Jan	2.7	-0.5	-2.3	4.3	3.2	1.5	-4.6
2023
Dec	2.8	0.1	-2.2	4.1	3.1	1.5	-2.1
Nov	2.8	-0.2	-2.0	4.2	3.3	1.8	-5.9
Oct	3.0	0.3	-2.1	4.4	3.5	2.5	-4.7
Sep	3.4	1.0	-2.2	4.7	3.7	2.8	0.1
Aug	3.4	0.8	-1.7	4.8	3.8	3.2	-3.7
Jul	3.4	-0.2	-0.9	5.2	4.3	3.8	-13.2
Jun	3.3	-0.4	-0.5	5.2	4.4	4.8	-17.6
May	4.0	1.2	0.4	5.4	4.7	5.9	-12.3
Apr	4.5	2.2	0.6	5.6	4.8	7.0	-5.7
Mar	4.4	2.0	0.5	5.7	4.8	8.0	-7.9
Feb	5.2	3.7	0.4	6.0	4.9	9.5	4.1
Jan	5.5	4.6	0.7	6.0	4.9	10.6	7.8
2022
Dec	5.5	4.8	1.6	5.8	5.0	11.1	6.7
Nov	6.0	6.3	2.8	5.9	5.2	11.1	13.6
Oct	6.5	7.4	4.1	6.0	5.5	11.5	18.3
Sep	6.7	8.2	5.7	5.9	5.6	11.7	20.0
Aug	6.6	8.6	5.4	5.6	5.4	12.2	24.0
Jul	6.8	9.6	5.7	5.3	5.1	11.8	33.6
Jun	7.2	10.7	6.3	5.5	5.3	11.0	43.1
May	6.8	9.9	7.1	5.3	5.2	10.6	35.8
Apr	6.7	9.7	8.5	5.2	5.3	9.6	31.4
Mar	6.9	10.6	10.1	5.1	5.6	8.9	33.2
Feb	6.5	9.6	10.8	5.0	5.6	7.6	26.5
Jan	6.3	8.8	10.5	5.0	5.4	6.4	28.2
2021
Dec	6.1	8.5	9.2	5.0	5.2	5.6	30.3
Nov	5.9	8.2	8.4	4.8	4.9	5.4	34.0
Oct	5.3	7.4	7.9	4.3	4.4	4.6	30.3
Sep	4.7	6.1	6.8	4.1	4.0	4.0	25.0
Aug	4.6	5.6	6.8	4.1	4.0	2.8	25.0
Jul	4.5	5.5	6.9	4.0	3.9	2.4	23.7
Jun	4.3	5.4	7.2	3.8	3.9	1.0	24.4
May	4.1	5.1	5.6	3.6	3.5	0.7	27.4
Apr	3.6	4.1	3.9	3.4	3.1	1.1	24.0
Mar	2.7	2.4	1.6	2.8	2.2	3.0	13.2
Feb	1.8	0.9	1.0	2.3	1.7	3.3	1.8
Jan	1.6	0.4	1.3	2.2	1.7	3.5	-4.6
2020
Dec	1.3	-0.1	1.4	2.0	1.5	4.0	-7.5
Nov	1.2	-0.5	0.6	2.0	1.5	3.7	-9.7
Oct	1.2	-0.6	0.2	2.1	1.4	3.8	-9.2
Sep	1.3	-0.4	-0.1	2.1	1.5	3.7	-8.0
Aug	1.2	-0.5	-0.1	2.0	1.4	4.1	-9.8
Jul	0.9	-1.1	-1.2	1.9	1.2	4.1	-11.7
Jun	0.8	-1.5	-2.5	1.8	1.0	5.0	-12.4
May	0.5	-2.2	-1.9	1.8	1.0	4.5	-18.3
Apr	0.5	-2.1	-1.9	1.7	1.0	3.9	-17.7
Mar	1.2	-1.0	-1.5	2.2	1.5	1.2	-6.4
Feb	1.7	0.3	-1.6	2.4	1.7	0.9	3.3
Jan	1.8	0.7	-2.0	2.3	1.6	0.9	8.3
2019
Dec	1.6	0.4	-1.7	2.1	1.5	0.7	3.8
Nov	1.4	-0.2	-1.3	2.1	1.5	0.9	-0.6
Oct	1.3	-0.7	-0.9	2.2	1.6	1.1	-4.9
Sep	1.3	-0.7	-0.8	2.2	1.6	0.8	-4.9
Aug	1.4	-0.4	-1.1	2.3	1.7	0.9	-4.0
Jul	1.5	-0.4	-1.2	2.3	1.6	0.9	-1.5
Jun	1.4	-0.4	-0.4	2.3	1.7	1.1	-2.8
May	1.5	-0.3	-1.1	2.3	1.6	1.3	-0.2
Apr	1.6	-0.2	-1.2	2.4	1.6	0.8	1.4
Mar	1.5	-0.1	-0.7	2.3	1.6	1.4	-0.4
Feb	1.4	-0.7	-0.5	2.4	1.7	1.4	-5.6
Jan	1.4	-0.8	-0.7	2.5	1.8	0.8	-6.0

Notes: percentage changes in price index relative to the same month a year earlier of PCE: personal consumption expenditures; PCEG: PCE goods; PCEG-D: PCE durable goods; PCES: PCE services; PCEX: PCE excluding food and energy; PCEF: PCE food; PCEE: PCE energy goods and services

Source: US Bureau of Economic Analysis https://apps.bea.gov/iTable/index_nipa.cfm

Chart IV1AP shows price indexes of personal consumption expenditures, PCE, and PCE Core Excluding Food and Energy. There is significant acceleration in both indexes in 2021 and subsequent continuing upward trend.

Chart IV-1AP, Indexes of Prices of Personal Consumption, PCE, and PCE Core, Excluding Food and Energy, 2019-2025

Source: Bureau of Economic Analysis, BEA

https://apps.bea.gov/iTable/index_nipa.cfm

Chart IV-2AP1 shows prices indexes of personal consumption expenditures and PCE Core, Excluding Food and Energy from 1959 to 2025. There is  sharper upward trend from the late 1970s to the 1980 and similar acceleration after 2021.

Chart IV-2AP1, Indexes of Prices of Personal Consumption, PCE, and PCE Core, Excluding Food and Energy, 1959-2025

Source: Bureau of Economic Analysis, BEA

https://apps.bea.gov/iTable/index_nipa.cfm

Chart IV-2AP2 provides indexes of prices of personal consumption expenditures PCE and PCE Core Excluding Food and Energy from the 1960s through the 1980s. There is sharp acceleration from the late 1970s throughout the 1980s.

Chart IV-2AP2, Indexes of Prices of Personal Consumption, PCE, and PCE Core, Excluding Food and Energy, 1965-1982

Source: Bureau of Economic Analysis, BEA

https://apps.bea.gov/iTable/index_nipa.cfm

Chart IV-2AP3 provides monthly percentage changes of  prices of personal consumption expenditures, PCE, and PCE Core, excluding Food and Energy from 1965 ti 1982, There is a jump in 1973 and continuing higher price changes through 1981.

Chart IV-2AP3, Monthly Percent Change of Indexes of Prices of Personal Consumption, PCE, and PCE Core, Excluding Food and Energy, 1965-1982

Source: Bureau of Economic Analysis, BEA

https://apps.bea.gov/iTable/index_nipa.cfm

 

Inflation and unemployment in the period 1966 to 1985 is analyzed by Cochrane (2011Jan, 23) by means of a Phillips circuit joining points of inflation and unemployment. Chart VI-1B for Brazil in Pelaez (1986, 94-5) was reprinted in The Economist in the issue of Jan 17-23, 1987 as updated by the author. Cochrane (2011Jan, 23) argues that the Phillips circuit shows the weakness in Phillips curve correlation. The explanation is by a shift in aggregate supply, rise in inflation expectations or loss of anchoring. The case of Brazil in Chart VI-1B cannot be explained without taking into account the increase in the fed funds rate that reached 22.36 percent on Jul 22, 1981 (http://www.federalreserve.gov/releases/h15/data.htm) in the Volcker Fed that precipitated the stress on a foreign debt bloated by financing balance of payments deficits with bank loans in the 1970s. The loans were used in projects, many of state-owned enterprises with low present value in long gestation. The combination of the insolvency of the country because of debt higher than its ability of repayment and the huge government deficit with declining revenue as the economy contracted caused adverse expectations on inflation and the economy.  This interpretation is consistent with the case of the 24 emerging market economies analyzed by Reinhart and Rogoff (2010GTD, 4), concluding that “higher debt levels are associated with significantly higher levels of inflation in emerging markets. Median inflation more than doubles (from less than seven percent to 16 percent) as debt rises frm the low (0 to 30 percent) range to above 90 percent. Fiscal dominance is a plausible interpretation of this pattern.”

The reading of the Phillips circuits of the 1970s by Cochrane (2011Jan, 25) is doubtful about the output gap and inflation expectations:

“So, inflation is caused by ‘tightness’ and deflation by ‘slack’ in the economy. This is not just a cause and forecasting variable, it is the cause, because given ‘slack’ we apparently do not have to worry about inflation from other sources, notwithstanding the weak correlation of [Phillips circuits]. These statements [by the Fed] do mention ‘stable inflation expectations. How does the Fed know expectations are ‘stable’ and would not come unglued once people look at deficit numbers? As I read Fed statements, almost all confidence in ‘stable’ or ‘anchored’ expectations comes from the fact that we have experienced a long period of low inflation (adaptive expectations). All these analyses ignore the stagflation experience in the 1970s, in which inflation was high even with ‘slack’ markets and little ‘demand, and ‘expectations’ moved quickly. They ignore the experience of hyperinflations and currency collapses, which happen in economies well below potential.”

Yellen (2014Aug22) states that “Historically, slack has accounted for only a small portion of the fluctuations in inflation. Indeed, unusual aspects of the current recovery may have shifted the lead-lag relationship between a tightening labor market and rising inflation pressures in either direction.”

Chart VI-1B provides the tortuous Phillips Circuit of Brazil from 1963 to 1987. There were no reliable consumer price index and unemployment data in Brazil for that period. Chart VI-1B used the more reliable indicator of inflation, the wholesale price index, and idle capacity of manufacturing as a proxy of unemployment in large urban centers.

Chart VI1-B, Brazil, Phillips Circuit, 1963-1987

Source: ©Carlos Manuel Pelaez,  Cruzado e o Austral: Análise das Reformas Monetárias do Brasil e da Argentina. São Paulo: Editora Atlas, 1986, pages 94-5. Reprinted in: Brazil. Tomorrow’s Italy, The Economist, 17-23 January 1987, page 25.

Inflation and unemployment in the period 1966 to 1985 is analyzed by Cochrane (2011Jan, 23) by means of a Phillips circuit joining points of inflation and unemployment. Chart VI-1B for Brazil in Pelaez (1986, 94-5) was reprinted in The Economist in the issue of Jan 17-23, 1987 as updated by the author. Cochrane (2011Jan, 23) argues that the Phillips circuit shows the weakness in Phillips curve correlation. The explanation is by a shift in aggregate supply, rise in inflation expectations or loss of anchoring. The case of Brazil in Chart VI-1B cannot be explained without taking into account the increase in the fed funds rate that reached 22.36 percent on Jul 22, 1981 (http://www.federalreserve.gov/releases/h15/data.htm) in the Volcker Fed that precipitated the stress on a foreign debt bloated by financing balance of payments deficits with bank loans in the 1970s. The loans were used in projects, many of state-owned enterprises with low present value in long gestation. The combination of the insolvency of the country because of debt higher than its ability of repayment and the huge government deficit with declining revenue as the economy contracted caused adverse expectations on inflation and the economy.  This interpretation is consistent with the case of the 24 emerging market economies analyzed by Reinhart and Rogoff (2010GTD, 4), concluding that “higher debt levels are associated with significantly higher levels of inflation in emerging markets. Median inflation more than doubles (from less than seven percent to 16 percent) as debt rises frm the low (0 to 30 percent) range to above 90 percent. Fiscal dominance is a plausible interpretation of this pattern.”

The reading of the Phillips circuits of the 1970s by Cochrane (2011Jan, 25) is doubtful about the output gap and inflation expectations:

“So, inflation is caused by ‘tightness’ and deflation by ‘slack’ in the economy. This is not just a cause and forecasting variable, it is the cause, because given ‘slack’ we apparently do not have to worry about inflation from other sources, notwithstanding the weak correlation of [Phillips circuits]. These statements [by the Fed] do mention ‘stable inflation expectations. How does the Fed know expectations are ‘stable’ and would not come unglued once people look at deficit numbers? As I read Fed statements, almost all confidence in ‘stable’ or ‘anchored’ expectations comes from the fact that we have experienced a long period of low inflation (adaptive expectations). All these analyses ignore the stagflation experience in the 1970s, in which inflation was high even with ‘slack’ markets and little ‘demand, and ‘expectations’ moved quickly. They ignore the experience of hyperinflations and currency collapses, which happen in economies well below potential.”

Yellen (2014Aug22) states that “Historically, slack has accounted for only a small portion of the fluctuations in inflation. Indeed, unusual aspects of the current recovery may have shifted the lead-lag relationship between a tightening labor market and rising inflation pressures in either direction.”

Chart VI-1B provides the tortuous Phillips Circuit of Brazil from 1963 to 1987. There were no reliable consumer price index and unemployment data in Brazil for that period. Chart VI-1B used the more reliable indicator of inflation, the wholesale price index, and idle capacity of manufacturing as a proxy of unemployment in large urban centers.

Chart IV-2AP4 provides Percent Change from Preceding Period in Indexes of Prices of Personal Consumption, PCE, and PCE Core, Excluding Food and Energy. There is sharp jump in 2021,

Chart IV-2AP4, Percent Change from Preceding Period in Indexes of Prices of Personal Consumption, PCE, and PCE Core, Excluding Food and Energy, 2019-2025

Source: Bureau of Economic Analysis, BEA

https://apps.bea.gov/iTable/index_nipa.cfm

 

 

© Carlos M. Pelaez, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026.