Personal income decreased $34.4 billion, or 0.3 percent, and disposable personal income (DPI) decreased $1.8 billion, or less than 0.1 percent, in March, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $24.2 billion, or 0.2 percent. In February, personal income decreased $24.3 billion, or 0.2 percent, DPI increased $0.2 billion, or less than 0.1 percent, and PCE increased $39.1 billion, or 0.4 percent, based on revised estimates.
Let's break this information down over a few posts. Click on all images for a larger image:
Total personal income -- which is a macro level statistic -- has been decreasing since October.
A big reason why is a decrease in wage and salary disbursements.
Yet, disposable personal income increased in January, February and March giving the US consumer more to spend. Why?
First there was an increase in transfer payments.
Secondly, there was a decrease in personal current taxes.
1 comments:
Correct me if I'm wrong but isn't there a few stats missing in all this. Like the fact that inspite of the lowering of federal taxes most states have increased taxes and fees to make up shortfalls as well as cut services. Then there is unemployment which has been draining jobs at 600K+ per month. That last figure alone along with the fear of job loss is making everyone save like never before. Even though most prices are going down I see food and gas prices creeping up.
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