Personal income in January 2011 rose 1.0 percent. Nominal personal consumption expenditures (PCE) increased 0.2 percent, while real PCE declined 0.1 percent. Nominal disposable personal income (DPI) rose 0.7 percent while real DPI increased 0.4 percent. The personal saving rate as a percentage of DPI was 5.8 percent in January.
Today’s release covers personal income and consumer spending for the month of January. The big news is on the income side where personal income increased 1.0 percent in January -- the largest increase since May 2009 and substantially higher than private expectations of 0.4 percent. Why did income go up so much? The bottom line is that income was substantially boosted by the tax cuts the President signed in December. More specifically, the jump in income in January from December was driven by the reduction in the withholding rate for social security from 6.2 to 4.2 percent. Wages and salaries, the largest component of income, rose a modest
Personal income in December 2010 rose 0.4 percent. Nominal personal consumption expenditures (PCE) increased 0.7 percent and real PCE rose 0.4 percent. Nominal disposable income (DPI) increased 0.4 percent and real DPI rose 0.1 percent. The personal savings rate as a percentage of DPI was 5.3 percent.
The Economics and Statistics Administration (ESA) releases 12 monthly and quarterly Principal Federal Economic Indicators collected by its constituent bureaus: the U.S. Census Bureau and the Bureau of Economic Analysis (BEA). Businesses rely heavily upon these indicators to make decisions every day. In their public comments, the Secretary and ESA’s Under Secretary and Chief Economist put the indicators into a national and global economic context.
Personal income in June 2010 increased less than 0.1% from May 2010. Real personal consumption expenditures increased 0.1% and real disposable income (DPI) rose 0.2%. The personal savings rate as a percentage of DPI was 6.4% in June.
