Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income increased at a nonannualized rate of 0.4 percent in September and is up 3.9 percent over the past twelve months. This follows monthly increases of 0.2 percent and 0.1 percent in July and August, respectively. Disposable personal income (DPI)—personal income less current taxes—also increased 0.4 percent for the month, following increases of 0.2 percent in July and 0.1 percent in August, and is up 3.6 percent since last year. Despite the September improvement in DPI, after controlling for price changes, “real” disposable personal income was flat for the month following a drop of 0.3 percent in August. Growth in “real” DPI slowed during the third quarter, as the average monthly growth rate from July through September was −0.1 percent compared with an average of 0.4 percent during the first quarter of this year, and 0.3 percent during the second quarter. However, over the last twelve months, “real” DPI has increased 1.9 percent, the largest year-over-year improvement since March of 2011. After gains of 0.3 percent in July and 0.1 percent in August, “real” personal consumption expenditures increased at a rate of 0.4 percent in September, and are up 2.1 percent since September of 2011. Leading the gains in the overall “real” PCE measure was consumption of durable goods, which increased 1.3 percent, compared with an improvement of 0.5 percent in the consumption of non-durables and 0.2 percent in services consumption. The near-term (three-month) trend in consumption growth has improved over the last few months as it has increased from 0.1 percent in July and August to 0.3 percent. Since consumption grew faster than income in September, this resulted in 0.4 percentage points drop in the personal savings rate (personal savings as a percentage of disposable income) from 3.7 percent to 3.3 percent.