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United States News Title: Real Disposible Personsal Income Drops .6% in January PERSONAL INCOME AND OUTLAYS: JANUARY 2010 Personal income increased $11.4 billion, or 0.1 percent, and disposable personal income (DPI) decreased $47.6 billion, or 0.4 percent, in January, according to the Bureau of Economic Analysis. The decrease in DPI reflected an increase in federal nonwithheld income taxes. Personal consumption expenditures (PCE) increased $52.4 billion, or 0.5 percent. In December, personal income increased $41.2 billion, or 0.3 percent, DPI increased $40.3 billion, or 0.4 percent, and PCE increased $26.4 billion, or 0.3 percent, based on revised estimates. Real disposable income decreased 0.6 percent in January, in contrast to an increase of 0.2 percent in December. Real PCE increased 0.3 percent, compared with an increase of 0.1 percent. 2009 2010 Sept. Oct. Nov. Dec. Jan. (Percent change from preceding month) Personal income, current dollars 0.1 0.3 0.4 0.3 0.1 Disposable personal income: Current dollars 0.2 0.4 0.5 0.4 -0.4 Chained (2005) dollars 0.1 0.2 0.3 0.2 -0.6 Personal consumption expenditures: Current dollars -0.6 0.5 0.5 0.3 0.5 Chained (2005) dollars -0.7 0.3 0.4 0.1 0.3 Wages and salaries Private wage and salary disbursements increased $16.1 billion in January, compared with an increase of $2.3 billion in December. Goods-producing industries' payrolls increased $5.2 billion, in contrast to a decrease of $3.2 billion; manufacturing payrolls increased $5.0 billion, in contrast to a decrease of $1.5 billion. Services-producing industries' payrolls increased $10.8 billion, compared with an increase of $5.5 billion. Government wage and salary disbursements increased $6.1 billion, compared with an increase of $2.7 billion. Pay raises for federal civilian and military personnel added $7.1 billion to government payrolls in January. Other personal income Employer contributions for employee pension and insurance funds increased $3.2 billion in January, compared with an increase of $1.3 billion in December. Employer contributions for government social insurance increased $11.6 billion in January, and were unchanged in December. The January increase was boosted by $10.2 billion reflecting an increase in the tax rates paid by employers to state unemployment insurance funds. (Changes in employer contributions for government social insurance do not affect personal income, because employer contributions for government social insurance are also included in total contributions for government social insurance, which is a subtraction in the calculation of personal income.) Proprietors' income decreased $3.2 billion in January, in contrast to an increase of $7.7 billion in December. Farm proprietors' income decreased $7.9 billion, in contrast to an increase of $5.9 billion. Nonfarm proprietors' income increased $4.7 billion, compared with an increase of $1.8 billion. Rental income of persons decreased $0.9 billion in January, in contrast to an increase of $1.9 billion in December. Personal income receipts on assets (personal interest income plus personal dividend income) decreased $20.8 billion, in contrast to an increase of $11.0 billion. Personal current transfer receipts increased $16.1 billion, compared with an increase of $14.5 billion. The January change in personal current transfer receipts was reduced by retroactive social security benefits payments, which had added $8.5 billion to December benefit payments; these benefits resulted from a recalculation of the earnings base underlying the benefits for recent retirees. Contributions for government social insurance -- a subtraction in calculating personal income -- increased $16.7 billion in January, compared with an increase of $0.3 billion in December. Employer contributions were boosted by $10.2 billion in January by increases in unemployment-insurance rates. Personal current taxes and disposable personal income Personal current taxes increased $59.0 billion in January, compared with an increase of $0.9 billion in December. Federal net nonwithheld income taxes (payments of estimated taxes plus final settlement less refunds) boosted the January change by $52.5 billion, based on federal budget projections of higher final settlements and lower refunds for 2010. Disposable personal income (DPI) -- personal income less personal current taxes -- decreased $47.6 billion, or 0.4 percent, in January, in contrast to an increase of $40.3 billion, or 0.4 percent in December. Personal outlays and personal saving Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $53.0 billion in January, compared with an increase of $21.6 billion in December. PCE increased $52.4 billion, compared with an increase of $26.4 billion. Personal saving -- DPI less personal outlays -- was $367.2 billion in January, compared with $467.9 billion in December. Personal saving as a percentage of disposable personal income was 3.3 percent in January, compared with 4.2 percent in December. For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and data on changes in net worth, go to http://www.bea.gov/national/nipaweb/Nipa-Frb.asp. Real DPI, real PCE and price index Real DPI -- DPI adjusted to remove price changes -- decreased 0.6 percent in January, in contrast to an increase of 0.2 percent in December. Real PCE -- PCE adjusted to remove price changes -- increased 0.3 percent in January, compared with an increase of 0.1 percent in December. Purchases of durable goods increased 0.7 percent, compared with an increase of 0.6 percent. Purchases of nondurable goods increased 0.8 percent, in contrast to a decrease of 0.8 percent. Purchases of services increased 0.1 percent, compared with an increase of 0.3 percent. PCE price index -- The price index for PCE increased 0.2 percent in January, compared with an increase of 0.1 percent in December. The PCE price index, excluding food and energy, increased less than 0.1 percent, compared with an increase of 0.1 percent. 2009 Personal Income and Outlays Personal income decreased 1.7 percent in 2009 (that is, from 2008 annual level to the 2009 annual level), in contrast to an increase of 2.9 percent in 2008. DPI increased 1.1 percent, compared with an increase of 3.9 percent. The difference between the change in personal income and the change in DPI in 2009 reflected a sharp decrease in personal current taxes in 2009. Personal current taxes decreased 23.1 percent in 2009, compared with a decrease of 3.9 percent in 2008. PCE decreased 0.4 percent, in contrast to an increase of 3.1 percent. Real DPI increased 0.9 percent in 2009, compared with an increase of 0.5 percent in 2008. Real PCE decreased 0.6 percent, compared with a decrease of 0.2 percent. Revisions Estimates of personal income have been revised for July through December; estimates for PCE have been revised for October through December. Changes in personal income, current-dollar and chained (2005) dollar DPI, and current-dollar and chained (2005) dollar PCE for November and December -- revised and as published in last month's release -- are shown below. For July through September, the revisions to wages and salaries reflected the incorporation of the most recently available BLS tabulations of third-quarter wages and salaries from the quarterly census of employment and wages. Wages and salaries were revised down for all three months. Change from preceding month November December Previous Revised Previous Revised Previous Revised Previous Revised (Billions of dollars) (Percent) (Billions of dollars) (Percent) Personal Income: Current dollars 61.1 51.6 0.5 0.4 44.5 41.2 0.4 0.3 Disposable personal income: Current Dollars 60.7 50.6 0.5 0.5 45.9 40.3 0.4 0.4 Chained (2005) dollars 29.2 28.4 0.3 0.3 31.8 22.7 0.3 0.2 Personal consumption expenditures: Current dollars 69.1 55.8 0.7 0.5 22.6 26.4 0.2 0.3 Chained (2005) dollars 38.8 34.4 0.4 0.4 11.5 11.1 0.1 0.1 This news release also presents revised estimates of wages and salaries, personal taxes, and contributions for government social insurance for July through September 2009 (third quarter). These estimates reflect newly available third-quarter wage and salary tabulation from the quarterly census of employment and wages from the Bureau of Labor Statistics. Typically, social security, supplemental security income, and other benefit payments are boosted by cost-of-living adjustments in January based on the increase in the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This year, there was no increase in the CPI-W. As a result, these benefit payments were not adjusted for changes in the cost-of-living this January. BEA’s national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA’s Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release – March 29, 2010 at 8:30 A.M. EDT for Personal Income and Outlays for February.
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#1. To: Nebuchadnezzar (#0)
Slowly but surely things continue to improve.
Dude, if it wasn't for the stimulus spending, which will bankrupt us, we'd have no economy. We can't keep this up or we'll destory the value of the dollar. Get real, we need an entirely new, SUSTAINABLE, economic model for this nation.
Whoa, are you actually admitting that stimulus spending is helping?? :-) What do you propose?
Get real, we need an entirely new, SUSTAINABLE, economic model for this nation. What do you propose? Dude, you dump $400 BILLION into an economy you're going to get **some** juice out of that economy. But is is fiscally smart???? Obviously no. All your doing is attempting to band-aide over the symptoms and not address the underlying problems which got you into the problem in the first place. The stimulus makes matters worse. If you had an infected gum-line and kept putting ambesol on it to ameliorate the pain you'd think you're "OKAY". But the problem just keeps getting worse and worse and and kill you if you don't address the underlying problem.
Compared with doing nothing? Look at the data on what happens when folks are unemployed for a long time. Even when they come back to work, they are far less productive. I'm a firm believer in Keynesian economics. During downtimes the government should ramp up spending and debt to counter-act the effects of consumer/business retrenchment. The part we always seem to forget is that during times of growth, the government is supposed to cut spending and raise taxes to balance out the earlier investment. What instead happened was we went on a tax cut/spending spree during the 2000's during a time of growth, leaving us illprepared to deal with the recession of 2008-09. Had the U.S. continued to run a surplus for the 2000's, spending a trillion to boost the economy wouldn't have been a problem - see China for example.
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