Archive for January, 2013

Personal Income Rises in December

PI_13113_1Personal income increased 2.6 percent in December after increasing 1.0 percent in November. Accelerated bonus payments of $30 billion (at an annual rate) in December and $15 billion in November boosted wages and salaries. Accelerated dividend payments of $291.0 billion in December and $25.8 billion in November, made in anticipation of tax law changes, boosted personal dividend income.

Current-dollar disposable personal income (DPI), after-tax income, increased 2.7 percent in December after increasing 1.0 percent in November.

Real DPI, income adjusted for taxes and inflation, grew 2.8 percent in December after increasing 1.3 percent in November.

Real consumer spending, spending adjusted for price changes, increased 0.2 percent in December after increasing 0.6 percent in November.

PI_13113_2PCE prices remained flat in December after decreasing 0.2 percent in November.

Personal saving rate
Personal saving as a percent of DPI was 6.5 percent in December, the highest rate since May 2009.

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

GDP Declines Slightly in Fourth Quarter

Real gross domestic product (GDP) decreased 0.1 percent in the fourth quarter of 2013 after increasing 3.1 percent in the third quarter, according to estimates released today by the Bureau of Economic Analysis. For the full year 2012, real GDP increased 2.2 percent after increasing 1.8 percent in 2011.

Fourth-quarter highlights
The decline in real GDP growth in the fourth quarter reflected the following:
• Inventory investment turned down, mainly because of a decline in inventory investment in manufacturing industries.
• Federal government spending fell significantly, reflecting a downturn in defense spending (for more information, see the technical note).
• Net exports turned down, mainly reflecting a decrease in exports of goods; food, feeds, and beverage items as well as civilian aircraft, engines, and parts fell significantly.
In contrast, business investment turned up, as spending on equipment and software rebounded (mainly computers and related parts as well as transportation equipment). Consumer spending also picked up (mainly financial services as well as autos and parts).

Gross domestic purchases prices
Prices of goods and services purchased by U.S. residents rose 1.3 percent in the fourth quarter, following a 1.4 percent rise in the third quarter. Energy prices slowed, and food prices turned up. Excluding food and energy, prices rose 1.1 percent in the fourth quarter, compared with 1.2 percent in the third quarter.

Annual highlights
The pickup in economic growth for the full year 2012 mainly reflected:
• A slowdown in imports, notably in capital goods (except autos) and consumer goods.
• A rebound in residential housing.
• An upturn in inventory investment.
• A smaller decrease in state and local government spending.

The contributions were partly offset by slowdowns in consumer spending (mainly on services and nondurable goods) and in exports (mainly industrial supplies and materials).

For more:
- here’s the full report.

November 2012 Trade Gap is $48.7 Billion

The U.S. monthly international trade deficit increased in November 2012, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $42.1 billion (revised) in October to $48.7 billion in November, as imports increased more than exports. The previously published October deficit was $42.2 billion. The goods deficit increased $6.6 billion from October to $65.7 billion in November, and the services surplus was virtually unchanged from October at $17.0 billion in November.trade_nov

Exports
Exports of goods and services increased $1.7 billion in November to $182.6 billion, mostly reflecting an increase in exports of goods. Exports of services also increased.
• The increase in exports of goods was more than accounted for by increases in capital goods, automotive vehicles, parts and engines, and industrial supplies and materials.
• The increase in exports of services was more than accounted for by increases in passenger fares and travel. A decrease in other private services, which includes items such as business, professional, and technical services, insurance services, and financial services, was partly offsetting.

Imports
Imports of goods and services increased $8.4 billion in November to $231.3 billion, mostly reflecting an increase in imports of goods. Imports of services also increased.
• The increase in imports of goods mostly reflected increases in consumer goods, automotive vehicles, parts and engines, and industrial supplies and materials.
• The increase in imports of services reflected an increase in other transportation, which includes freight and port services. Smaller increases in most of the other categories of services imports also contributed.

Goods by geographic area (not seasonally adjusted)
• The goods deficit with China decreased from $29.5 billion in October to $29.0 billion in November. Exports decreased $0.2 billion to $10.6 billion, while imports decreased $0.7 billion to $39.5 billion.
• The goods deficit with Canada increased from $1.7 billion in October to $3.0 billion in November. Exports decreased $1.2 billion to $24.7 billion, while imports increased $0.1 billion to $27.7 billion.
• The goods deficit with Mexico increased from $4.4 billion in October to $4.9 billion in November. Exports decreased $1.6 billion to $18.8 billion, while imports decreased $1.1 billion to $23.7 billion.

To learn more about U.S. international trade in goods and services, read the full report.