Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income was flat in October, following increases of 0.1 percent in August and 0.4 percent in September. Since last year, nominal income has increased 3.1 percent, a slight drop off from September’s 12-month growth rate of 3.5 percent. Disposable personal income (DPI)—personal income less current taxes—was also flat during October, and has increased 3.0 percent on a year-over-year basis. After controlling for price changes, “real” disposable personal income fell 0.1 percent for the month. This follows no change in “real” DPI during September, and a 0.3 percent decline in August. Over the past twelve months, “real” disposable personal income has increased 1.2 percent, which is slightly below the third quarter average 12-month growth rate of 1.6 percent, but still better than average growth rates of 0.2 percent and 1.1 percent during the first and second quarter, respectively. In the release, the Bureau of Economic Analysis also mentions that there was some downward pressure on October’s income numbers due to work interruptions related to Hurricane Sandy. This had the effect of reducing private wage and salary disbursements, which declined 0.3 percent during the month. “Real” personal consumption expenditures declined 0.3 percent in October, which follows an increase of 0.4 percent in September. Over the past twelve months, consumption has increased 1.3 percent, which is marks the smallest year-over-year improvement since August of 2010. Consumption of durable goods declined 1.7 percent and nondurable goods consumption decreased 0.3 percent in October, both contributing to the monthly decline in the overall number, while consumption of services remained basically flat.