Personal income decreased 0.1 percent in October after increasing 0.5 percent in September. Wages and salaries, the largest component of personal income, rose 0.1 percent after rising 0.4 percent. Proprietors’ income fell 1.4 percent in October due to a decline in farm proprietors’ income after farmers received a one-time payment in September for a settlement of a lawsuit against the Department of Agriculture.
Current-dollar disposable personal income (DPI), after-tax income, decreased 0.2 percent in October after increasing 0.5 percent in September.
Real DPI, income adjusted for taxes and inflation, decreased 0.2 percent in October after rising 0.4 percent in September.
Real consumer spending, spending adjusted for price changes, increased 0.3 percent in October after increasing 0.1 percent in September. Spending on durable goods increased in October after decreasing in September.
PCE prices were flat in October after rising 0.1 percent in September. Excluding food and energy, PCE prices rose 0.1 percent in October, the same as in September.
Personal saving rate
Personal saving as a percent of DPI was 4.8 percent in October and 5.2 percent in September.
To learn more about personal income and outlays, read the full report.
You probably noticed that today’s release of the Bureau of Economic Analysis’ (BEA) local area personal income statistics is missing some detail that’s normally included. Why?
Automatic budget cuts due to the 2013 sequester forced BEA to eliminate some data from the release, including detailed county-level statistics showing how much income people received from specific transfer receipts programs (unemployment benefits, Social Security, and Medicare); information on the categories of farm income and expenses; and data on the number of people employed by industry and the average wage per job.
BEA laid out the impact of the 2013 budget sequester on its local area personal income (LAPI) statistics on June 19. Today’s release is the first LAPI report affected by the automatic budget cuts.
BEA also scaled back some of the local statistical detail normally provided. For instance, today’s report contains detailed compensation and earnings information for 25 industries, instead of the usual 108.
For more information on how BEA’s LAPI statistics were affected by the 2013 sequester, please visit BEA’s Web site.
You can still access historical LAPI statistics that were produced before the detail was eliminated or reduced. Those statistics (which cover the period of 1969–2011 and were published November 2012) are available at http://www.bea.gov/regional/histdata, under the heading Local Area Personal Income.
Personal income growth slowed in 2012 in most of the nation’s 381 metropolitan statistical areas (MSAs). Personal income growth slowed in 311 MSAs, accelerated in 65 MSAs, and remained unchanged in 5 MSAs. On average, MSA personal income rose 4.2 percent in 2012, after growing 6.0 percent in 2011. Personal income growth ranged from 12.1 percent in Midland, TX, to –1.6 percent in Yuma, AZ, one of only five MSAs where personal income declined in 2012. Inflation, as measured by the national price index for personal consumption expenditures, slowed to 1.8 percent in 2012 from 2.4 percent in 2011.
For more on local area personal income, read the full report.