This is not sustainable as an economy or a society.

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Real Spending Has Exceeded Real Income for Seven Straight Months

Real personal income peaked in April of 2025. Spending continues unabated.

Real Disposable Personal Income (DPI) Minus Real PCE

Today the BEA released Personal Income and Outlays report for October and November.

  • 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
  • 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).

Real Income and Spending Percent Change

Real Disposable Personal Income (DPI) and Real PCE

The lead chart shows the result of subtracting Real PCE from Real DPI. Differences, if any, are due to rounding.

The net result has been negative for seven months starting April 2025.

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