Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income slipped down 0.1 percent (non-annualized) in August, reversing a downwardly revised 0.1 percent gain in July, and is now up 4.5 percent over the past year. Disposable personal income—which equals personal income less current taxes—was roughly flat in August. rose 0.3 percent in July. After adjusting for price changes, “real” disposable income posted its first back-to-back monthly declines since mid-2009, falling 0.2 percent and 0.3 percent in July and August, respectively. The series’ 12-month growth rate has slowed reflecting the recent softness and is trending at just 0.3 percent as of August (its slowest growth rate since May 2010). Some support for aggregate income has been waning lately, as nominal government transfers for social programs have slipped down 0.8 percent over the past two months (largely reflecting decreases in medicaid and unemployment insurance transfers). Real personal consumption expenditures were flat in August after an auto purchase-fueled 0.4 percent jump-up in July. The level of consumption was revised down slightly over the last few months, and is growing at an annualized rate of just 1.0 percent over the past three months; below its 12-month growth rate of 1.8 percent. Durables spending ticked up just 0.1 percent in August, while nondurables purchases—which have fallen in 4 of the last 6 months—decreased 0.4 percent during the month. Services consumption rose 0.1 percent in August, following a 0.4 percent gain in July, and is up 1.5 percent over the past year. The personal savings rate (as a percent of disposable income) slipped down 0.2 percentage points in August to 4.5 percent.