personal savings rate

Personal Income & Outlays for June 2010

Personal Income and Outlays for June 2010 was released today. While overall income is flat, wages and salaries are down.

Private wage and salary disbursements decreased $5.2 billion in June, in contrast to an increase of $19.2 billion in May. Goods-producing industries' payrolls decreased $8.9 billion, in contrast to an increase of $10.4 billion; manufacturing payrolls decreased $6.0 billion, in contrast to an increase
of $7.8 billion. Services-producing industries' payrolls increased $3.7 billion, compared with an increase of $8.8 billion. Government wage and salary disbursements decreased $0.6 billion, in contrast to an increase of $7.0 billion. The decline in the number of temporary workers for Census 2010 subtracted $3.4 billion at an annual rate from federal civilian payrolls in June; the hiring of additional temporary workers had added $5.7 billion at an annual rate in May.

 

Personal Income & Outlays for March 2010

Personal Income and Outlays for March 2010 was released today. Once again, Americans' spending is increasing more than their incomes. Even more interesting, the increase in unemployment insurance benefit payouts equaled the increase in wages and salaries from private industries, $11.8 billion, at a seasonally adjusted annual rate. The total government transfer payments was over 66% of the personal income growth for March.

Personal income increased $36.0 billion, or 0.3 percent, and disposable personal income (DPI) increased $32.3 billion, or 0.3 percent. Personal consumption expenditures (PCE) increased $58.6 billion, or 0.6 percent.

 

Personal Income

Out of this quarter's GDP report are some updates on personal income, disposable personal income, the personal savings rate and taxes.

Recall real personal income means it has been adjusted for inflation. Below is this quarter's data along with graphs.

"A Painful Recovery"

I am not sure where I came across this article. If it was on EP, I apologize for not giving credit but it may have been Calculated Risk. This article has some sombering graphs.

The article titled "US Household Deleveraging and Future Consumption Growth", by Reuven Glick and Kevin Lansing, articulates (much better than I can) why future economic growth may be relatively weak or anemic. The article suggests that U.S. households may continue to "deleverage" which may result in less consumption. It concludes that this "deleveraging" will not be painless.

U.S. household leverage, as measured by the ratio
of debt to personal disposable income, increased modestly from 55% in 1960 to 65% by the mid-1980s. Then, over the next two decades, leverage proceeded to more than double, reaching an all-time high of 133% in 2007. That dramatic rise in

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