Archive for June, 2012

Real Disposable Personal Income Picks Up

Personal income increased 0.2 percent in May, the same increase as in April. The increase in wages and salaries was less than 0.1 percent in May, compared with an increase of 0.1 percent in April.

Current-dollar disposable personal income (DPI)—after-tax income—increased 0.2 percent in May, the same increase as in April.

Real DPI— income adjusted for taxes and inflation—increased 0.3 percent in May after increasing 0.1 percent in April.

Real consumer spending—spending adjusted for price changes—increased 0.1 percent in May, the same increase as in April. Spending on durable goods fell 0.4 percent in May after falling 0.1 percent in April, while spending on nondurable goods rose 0.3 percent after rising 0.1 percent.

Prices decreased 0.2 percent in May after remaining flat in April. Excluding food and energy, prices increased 0.1 percent in May, the same increase as in April.

Personal saving as a percent of DPI was 3.9 percent in May, compared with 3.7 percent in April.

To learn more about personal income and outlays, read the full report.

GDP Growth Slows in First Quarter

Real gross domestic product (GDP) rose 1.9 percent in the first quarter of 2012 after rising 3.0 percent in the fourth quarter, according to estimates released by the Bureau of Economic Analysis. The first-quarter growth rate was unchanged from the second estimate released in May.

GDP highlights
Net exports increased (after decreasing in the fourth quarter), consumer spending accelerated, and residential housing investment picked up in the first quarter. These positive economic contributions, however, were more than offset by a slowdown in inventory investment.

The slowdown in inventory investment reflected a sharp downturn in the manufacturing and wholesale industries. In contrast, retail inventory investment turned up, especially by motor vehicles dealers.

Revisions to GDP
For the third estimate of first-quarter real GDP growth, upward revisions to net exports and business investment in structures were offset by downward revisions to consumer spending, inventory investment, and state and local government spending.

Disposable income and saving
Real disposable personal income—which adjusts personal income for taxes and inflation—rose 0.7 percent in the first quarter, compared with 0.2 percent in the fourth quarter. The personal saving rate—saving as a percentage of disposable personal income—was 3.7 percent, compared with 4.2 percent in the fourth quarter. The personal saving rate has declined for six quarters in a row.

Corporate profits
First-quarter corporate profits fell 0.3 percent at a quarterly rate following a 0.9 percent rise in the fourth quarter. First-quarter nonfinancial profits rose 1.4 percent after rising 2.6 percent, and financial profits rose 5.7 percent after rising 7.0 percent. Profits from the rest of the world fell 11.8 percent after declining 9.2 percent.

The first-quarter decline reflected a 2.2 percent drop in receipts from abroad and a 15.9 percent rise in payments to entities abroad.

To learn more about gross domestic product, read the full report.

Personal Income in States Grows

State personal income growth accelerated to 0.8 percent in the first quarter of 2012, from 0.4 percent in the fourth quarter of 2011. Personal income rose in 47 of the 50 states, fell in Kansas and Mississippi, and was unchanged in Oklahoma. The percent change across states ranged from 2.3 percent in North Dakota to –0.3 percent in Mississippi. Inflation, as measured by the national price index for personal consumption expenditures, increased to 0.6 percent in the first quarter of 2012 from 0.3 percent in the fourth quarter of 2011.

state personal income map

State personal income

For more information about state personal income, read the full report.