This report from the U.S. Bureau of Economic Analysis (BEA) explains how Americans’ income, spending, prices, and saving changed in October and November 2025. In brief, incomes rose modestly, consumer spending increased more quickly than income, inflation remained moderate but persistent, and the personal saving rate continued to decline (U.S. Bureau of Economic Analysis, 2026). Assistance from Claude AI.
Income
Personal income increased slightly in October and more strongly in November. The primary drivers were:
– Higher wages and salaries, especially in the private sector
– Increases in government social benefits, including Social Security and Medicare
– A rebound in personal dividend income in November
After accounting for taxes, disposable personal income—the money households actually have available to spend—also rose, but only modestly (U.S. Bureau of Economic Analysis, 2026).
Consumer Spending
Consumer spending grew faster than income in both months.
– Services spending rose due to higher costs and usage of health care, housing and utilities, and financial services.
– Goods spending increased for items such as motor vehicles, recreational goods, clothing, and, in November, gasoline and other energy goods.
Overall, Americans continued to spend more each month, even as income gains remained relatively small (U.S. Bureau of Economic Analysis, 2026).
Prices and Inflation
Inflation remained steady.
– The Personal Consumption Expenditures (PCE) price index increased 0.2 percent in both October and November.
– Compared with the same months a year earlier, prices were about 2.7 to 2.8 percent higher.
– Inflation excluding food and energy showed the same pattern, indicating that price increases were broad-based but not accelerating sharply.
This measure of inflation is closely watched by the Federal Reserve when setting monetary policy (U.S. Bureau of Economic Analysis, 2026).
Saving
Personal saving declined in both months.
– The personal saving rate fell from 3.7 percent of disposable income in October to 3.5 percent in November.
This means households, on average, were setting aside a smaller share of their income and using more of it for current spending (U.S. Bureau of Economic Analysis, 2026).
Why It Matters
The data suggest that consumer spending remained a key support for economic activity at the end of 2025, backed by rising wages and benefits. However, spending continued to outpace income growth, and saving rates fell further. While this supports short-term economic growth, it may leave households more financially vulnerable if income growth slows or inflation remains elevated.
Reference
U.S. Bureau of Economic Analysis. (2026). Personal income and outlays, October and November 2025. https://www.bea.gov