Personal Income and Outlays for January 2010 was released today.
Personal income increased $11.4 billion, or 0.1 percent, and disposable personal income (DPI) decreased $47.6 billion, or 0.4 percent, in January.
The decrease in DPI reflected an increase in federal nonwithheld income taxes. Personal consumption expenditures (PCE) increased $52.4 billion, or 0.5 percent. In December, personal income increased $41.2 billion, or 0.3 percent, DPI increased $40.3 billion, or 0.4 percent, and PCE increased $26.4 billion,or 0.3 percent, based on revised estimates.
Real disposable income decreased 0.6 percent in January, in contrast to an increase of 0.2 percent in December. Real PCE increased 0.3 percent, compared with an increase of 0.1 percent.
Also, minus transfer payments real personal income is down -0.2% (table 5). Below is Personal Consumption, so we can see income is flat yet consumption increased. Of that, energy was 2.9%. PCE minus spending on energy goods and services was flat.
Personal saving as a percentage of disposable personal income was 3.3 percent in January, compared with 4.2 percent in December.
So, what does all of this mean? People are broke, using their savings to pay for increased energy related costs is my take. Also, this is yet more evidence relying on the grand consumer is a tapped out stimulus plan for economic growth. On the farmers income hammering of a -7.9% drop, this also includes inventory and capital.
Others with more observations, analysis, please comment. An example, in table 3, personal current transfer receipt, we have "other". What exactly is "other"? I'd personally like to find a better breakdown in income and wealth, to see where it all is actually coming from to gain more insight.