Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income increased at a nonannualized rate of 0.1 percent in August, following improvements of 0.3 and 0.1 in June and July, respectively. Over the last 12 months, nominal income has increased 3.5 percent. Disposable personal income—personal income less current taxes—also grew 0.1 percent in August, following increases of 0.3 and 0.1 in the prior two months, and is up 3.3 percent since August of 2011. However, there was a bit of price influence on the headline number, as “real” disposable personal income (DPI after controlling for prices changes) fell for the first time since November of last year, dropping 0.3 percent. Growth in “real” DPI has slowed gradually since the beginning of the year, as the current 3-month trend is now flat compared with an average growth rate of 0.4 percent throughout the first quarter and 0.2 percent during the second. However, despite the slowing of growth in month-to-month changes, due to a similar slowing pattern during the second half of last year, the year-over-year changes in “real” DPI have improved in recent months, reaching 1.8 percent in August following a similar reading of 1.8 percent in July. The current short-term (3-month) trend in year-over-year changes improved to 1.7 percent from 1.6 percent in the prior month and 1.3 percent during the second quarter. After a strong gain of 0.4 percent in July, “real” personal consumption expenditures increased 0.1 percent in August. Consumption is up 2.0 percent over the last 12 months, which is currently in line with its short-term trend. Goods consumption was responsible for the slight increase in the overall number as it improved 0.4 percent, while consumption of services fell 0.1 percent.