Archive for December, 2012

Real Disposable Personal Income Turns Up in November

PI_122112_2Personal income increased 0.6 percent in November after increasing 0.1 percent in October. Wages and salaries increased 0.6 percent in November after decreasing 0.3 percent in October. The October decrease reflected work interruptions caused by Hurricane Sandy, which reduced wages and salaries by 0.3 percent.

Current-dollar disposable personal income (DPI), after-tax income, increased 0.6 percent in November after increasing 0.1 percent in October.

Real DPI, income adjusted for taxes and inflation, grew 0.8 percent in November after decreasing 0.1 percent in October.

Real consumer spending, spending adjusted for price changes, increased 0.6 percent in November after falling 0.2 percent in October. Spending on durable goods increased 2.9 percent in November after falling 0.9 percent in October.

PI_122112_1PCE prices decreased 0.2 percent in November after increasing 0.1 percent in October.

Personal saving rate
Personal saving as a percent of DPI was 3.6 percent in November, compared with 3.4 percent in October.

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

GDP Growth Accelerates in Third Quarter

Real gross domestic product (GDP) increased 3.1 percent in the third quarter of 2012 after increasing 1.3 percent in the second quarter, according to estimates released by the Bureau of Economic Analysis. The third-quarter growth rate was revised up 0.4 percentage point from the second estimate released in November.

gdp_122012_1Real GDP highlights
Inventory investment was the main driver of the third-quarter acceleration in real economic growth. Nonfarm inventory investment turned up, more than offsetting a larger decline in farm inventory investment that stemmed from the summer drought in the Midwest.

In addition, consumer spending for durable goods picked up, as motor vehicles and parts turned up. Federal national defense spending rebounded, as did state and local government spending.

In contrast to these positive contributions to real economic growth, consumer spending for services slowed, and business investment turned down, mainly reflecting a downturn in spending on equipment and software.

Revisions to GDP
The 0.4 percentage point upward revision of real GDP growth reflected upward revisions to:
• Net exports, as exports was revised up, mainly industrial supplies and materials, and imports was revised down, mainly travel services and industrial supplies and materials.
• Consumer spending, mainly health care services. (After the revisions, consumer spending picked up slightly after slowing modestly in the second estimate released in November.)
• State and local government gross investment in structures.

gdp_122012_2Corporate profits
BEA released a revised estimate of third-quarter corporate profits. Profits picked up in the third quarter, rising 2.4 percent at a quarterly rate, after rising 1.1 percent in the second quarter.

Profits of financial corporations rose 17.5 percent in the third quarter, while profits of nonfinancial corporations fell 1.3 percent. Profits from the rest of the world decreased 1.9 percent.

For more, here’s the full report.

State Personal Income: Third Quarter 2012

State personal income growth slowed to 0.5 percent in the third quarter of 2012 from 0.7 percent in the second quarter. Growth slowed in 34 states, accelerated in 11, and was unchanged in 5. Growth across states ranged from 1.4 percent in North Dakota to –1.6 percent in South Dakota. Inflation, as measured by the national price index for personal consumption expenditures, accelerated to 0.4 percent in the third quarter from 0.2 percent in the second quarter.

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