Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income jumped 2.6 percent (nonannualized) in December, following increases of 1.0 percent in November (revised up from 0.6 percent) and 0.1 percent October. The large increase was primarily due to “"accelerated bonus payments and other irregular pay in private wages and salaries in anticipation of changes in individual income tax rates,” as stated by the Bureau of Economic Analysis (BEA). Also impacting income in December were lump sum social security benefit payments. Disposable personal income (DPI)—personal income less current taxes—increased 2.7 percent in December. This follows increases of 0.1 and 1.0 percent in October and November, respectively, and on a year-over-year basis, DPI is up 7.0 percent. Additionally, the BEA mentioned that without those additional factors stated above, DPI would have increased just 0.4 percent in December. After controlling for price changes, “real” disposable personal income increased 2.8 percent during the month. This helped to pull the current near-term (three-month) trend in “real” DPI growth up from 0.4 percent to 1.3 percent, and over the past year “real” disposable personal income has increased 5.6 percent. “Real” personal consumption expenditures increased 0.2 percent during December, after an increase of 0.6 percent in November and a 0.2 percent decline in October. Consumption averaged monthly increases of 0.2 percent during the fourth quarter of last year, which is similar to the third quarter trend. Over the past year, consumption has increased 2.2 percent. Consumption of goods increased 0.6 percent in December following an increase of 1.0 percent in November, and services consumption increased 0.1 percent in December after increasing 0.4 percent in the prior month. The jump in income compared with the modest increase in consumption caused the personal savings rate to increase from 4.1 percent in November to 6.5 percent in December.