disposable income

Personal Income Rose 0.4% in June; Personal Spending Rose 0.2%

Other than the employment report and the GDP report itself, the monthly report on Personal Income and Outlays from the Bureau of Economic Analysis is the most important economic release we see monthly, as it gives us the monthly data on our personal consumption expenditures (PCE), which accounts for more than 2/3rds of GDP, our personal income and disposable personal income data, our savings and savings rate,

The Revisionist National Income And Product Accounts

The Bureau of Economic Analysis has revised the National Income and Product Accounts all the way back to 1928.  With the release of Q2 GDP, Gross Domestic Product magically added $559.8 billion to 2012 GDP in current dollars.  Additionally the chained dollar base year was changed from 2005 to 2009, a very funky year where some deflation from 2008 was still present.

Consumer Spending Increased 0.8%, Real Personal Income Minus Government Payments Decreased -0.1% for September 2012

Americans spent more than they earned. That's what's implied in the BEA's September personal income and outlay's report. Consumer spending increased 0.8% from last month, and when adjusted for inflation was a 0.4% increase for September. Consumer spending is another term for personal consumption expenditures or PCE.

Real Consumer Spending Decreased -0.1%, But Wages Get a Boost for June 2012

Consumer spending was unchanged from last month, but after taking price increases into account, decreased by -0.1%. Personal consumption expenditures are often called consumer spending by the press. Real Personal Consumption Expenditures, or PCE, are about 71% of GDP. Real means chained to 2005 dollars, thus adjusted for inflation. Below is a graph of real PCE.

 

Real Personal Consumption Increased 0.1% for May 2012

Consumer spending was unchanged from last month, but after taking price increases into account, shows a 0.1% increase. Personal consumption expenditures are often called consumer spending by the press. Real Personal Consumption Expenditures, or PCE, are about 71% of GDP. Real means chained to 2005 dollars, thus adjusted for inflation. Below is a graph of real PCE. This is not good news for Q2 GDP.

Real Consumer Spending Increased 0.1% for March 2012, Real Disposable Personal Income Up 0.2%

Consumer spending increased 0.3% from last month, but after taking price increases into account, showed only a 0.1% increase. Personal consumption expenditures are often called consumer spending. Real Personal Consumption Expenditures, or PCE, are about 71% of GDP. Real means chained to 2005 dollars, thus adjusted for inflation. Below is a graph of real PCE.

 

Real Consumer Spending Up, 0.5%, Real Personal Income Down, -0.1%, for February 2012

The Personal Income and Outlays report shows people spent more than they earned in February. Consumer spending increased 0.8% from last month, but after taking price increases into account, increased by 0.5%. While disposable income increased by 0.2%, when adjusted for inflation, disposable income actually dropped, -0.1%. Personal income increased 0.2% in February.

Real Consumer Spending Zero, Real Personal Income -0.1%, for January 2012

There is spending and income and then there is spending an income adjusted for price increases. The Personal Income and Outlays report covers individual income, consumption and savings. Consumer spending increased 0.2% from last month, but after taking price increases into account, there was actually no monthly change.

Consumer Spending, Personal Income both up 0.1%, for November 2011

The Personal Income and Outlays report for November covers individual income, consumption and savings. Consumer spending increased 0.1% while disposable income had no change. Personal income increased 0.1% There are two things to garner from this month's numbers. Consumer spending is mute and wages, salaries declined.

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