Friday, May 1, 2009

Personal Income

Yesterday the BEA released personal income and spending information:

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.