Archive for September, 2013

State Personal Income: Second Quarter 2013

spi_0930_1State personal incomes grew 1.0 percent on average in the second quarter of 2013 after falling 1.3 percent in the first quarter. Personal income growth ranged from 1.5 percent in Florida and Arizona spi_0913_2to –0.7 percent in Nebraska. The national price index for personal consumption expenditures was unchanged in the second quarter after rising 0.3 percent in the first quarter.

For more information on state personal income, see the full report.

Personal Income Increases in August

pi_0927Personal income increased 0.4 percent in August after increasing 0.2 percent in July. Wages and salaries, the largest component of personal income, increased 0.4 percent in August after decreasing 0.3 percent in July. Government wages were reduced in August and in July due to furloughs.

Current-dollar disposable personal income (DPI), after-tax income, increased 0.5 percent in August after increasing 0.3 percent in July.

Real DPI, income adjusted for taxes and inflation, increased 0.3 percent in August after increasing 0.2 percent in July.

Real consumer spending, spending adjusted for price changes, increased 0.2 percent in August after increasing 0.1 percent in July. Spending on durable goods and services increased.

PCE prices increased 0.1 percent in August, the same increase as in July. Excluding food and energy, PCE prices increased 0.2 percent in August, compared to an increase of 0.1 percent in July.

Personal saving rate
Personal saving as a percent of DPI was 4.6 percent in August and 4.5 percent in July.pi_0927_2

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

GDP Growth Accelerates in Second Quarter

Real gross domestic product (GDP) increased 2.5 percent in the second quarter of 2013 after increasing 1.1 percent in the first quarter, according to the “third” estimate released by the Bureau of Economic Analysis (BEA). The second-quarter growth rate was the same as the “second” estimate released in August.gdp_1_0925

GDP growth highlights
The second-quarter acceleration reflected upturns in business investment, mainly in power and communications structures, and in goods exports, mainly in nonautomotive capital goods and in nonautomotive consumer goods.

In contrast, imports picked up, farm inventory investment slowed, and consumer spending decelerated, mainly nondurable goods and services.

Revisions
The second-quarter GDP growth rate reflected offsetting revisions. Inventory investment was revised down, notably retail trade outlets (mainly food and beverage stores) and “other” industries (mainly information industries). Exports of goods and services were also revised down. In contrast, state and local government spending was revised up, notably gross investment in structures.

Disposable personal income and personal saving
Real disposable personal income—personal income adjusted for taxes and inflation—rose 3.5 percent after falling 7.9 percent in the first quarter. (The steep first-quarter decline reflected one-time accelerated dividend and wage payments made in the fourth quarter of 2012.)

Personal saving as a percentage of disposable income was 4.5 percent in the second quarter, compared with 4.1 percent in the first quarter.

Corporate profitsgdp_2_0925
BEA’s featured measure of corporate profits rebounded in the second quarter, increasing 3.3 percent after decreasing 1.3 percent in the first quarter.

• Profits of nonfinancial corporations rose 3.2 percent after falling 0.3 percent.
• Profits of financial corporations increased 5.7 percent after decreasing 0.9 percent.
• Profits from the “rest of the world” rose 1.2 percent after falling 4.7 percent.

Compared with the second quarter a year ago, corporate profits rose 4.5 percent.

For more on GDP, read the full report.