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Personal Income Rises in May

chart2Personal income increased 0.4 percent in May after increasing 0.3 percent in April. Wages and salaries, the largest component of personal income, increased 0.4 percent after increasing 0.3 percent.

Current-dollar disposable personal income (DPI), after-tax income, increased 0.4 percent in May, the same increase as in April.

Real DPI, income adjusted for taxes and inflation, increased0.2percent in May, the same increase as in April.

Real consumer spending, spending adjusted for price changes, decreased 0.1 percent in May after decreasing 0.2 percent in April. Spending on durable goods increased 1.0 percent after decreasing 0.9percent; spending on motor vehicles and parts turned up in May.

PCE prices increased 0.2 percent in May, the same increase as in April. Excluding food and energy, PCE prices rose 0.2 percent in May, the same as in April.

Personal saving rate
Personal saving as a percent of DPI was 4.8 percent in May and 4.5 percent in April.

real disposable personal income

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Direct Investment Positions for 2013 Now Available

Both outbound and inbound U.S. foreign direct investment continued to grow in 2013. The U.S. direct investment position abroad valued at historical cost increased to $4,660.9 billion from $4,384.7 billion in 2012.  The foreign direct investment position in the United States valued at historical cost increased to $2,764.0 billion from $2,605.8 billion in 2012.

Inward Direct Investment Outward Direct Investment

The U.S. Bureau of Economic Analysis (BEA) has released detailed statistics on U.S. direct investment abroad – or “outward direct investment”­­­– and on foreign direct investment in the United States – or “inward direct investment”.  These statistics cover direct investment positions at historical-cost (book value) on a directional basis, by country and industry. On a directional basis, direct investment claims and liabilities are classified according to whether the direct investor is a U.S. resident or a foreign resident. On this basis, outward investment occurs between a U.S. parent company and its foreign affiliates, and inward direct investment occurs between a foreign company and its U.S. affiliates. In each case, the position measures the parent’s net financial claims on its affiliates.

These statistics provide data on direct investment by country and by industry.  For outward investment, the statistics provide information for major countries and industries in which U.S. companies have invested directly and are classified by the country and industry of the foreign affiliate.

For inward investment, the statistics provide information for major countries from which there is direct investment.  These statistics are classified by the country of the foreign parent—that is, the country of the investor with a direct investment in the U.S. affiliate.  Statistics on inward investment classified by the country of the investor who ultimately controls the investment, called the ultimate beneficial owner, are also available.

By providing this additional detail, these statistics enhance the International Transactions Accounts released in June 2014 and the upcoming International Investment Position statistics.

For 2011-2012, the statistics reflect the incorporation of new or revised data from BEA’s quarterly surveys of transactions between parents (both U.S. and foreign) and their affiliates, along with annual surveys of financial and operating data for U.S. parent companies and their foreign affiliates and for U.S. affiliates of foreign companies.

Upcoming articles in the July and September Survey of Current Business will present these statistics as well as additional statistics, such as related financial transactions and income, statistics for all countries and industries, reinvestment ratios, rates of return, and position and income data for outward investment classified by the industry of the U.S. parent.

GDP Decreases in First Quarter

Real gross domestic product (GDP) decreased 2.9 percent in the first quarter of 2014, according to the “third” estimate released today by the Bureau of Economic Analysis. In the fourth quarter of 2013, real GDP increased 2.6 percent.

First-quarter highlights

The decline in real GDP was largely accounted for by significant declines in nonfarm inventory investment and in net exports.

In addition, state and local government spending, business investment, and housing investment also contributed to the real GDP decline.

In contrast, consumer spending increased, notably in services (mainly home utilities).quarter to quarter gdp

Revisions

The first-quarter real GDP growth rate was revised down 1.9 percentage points from the second estimate released in May, based on newly available source data.

  • Consumer spending was revised down, primarily reflecting a downward revision to services, mainly to health care.
  • Exports of goods were revised down, reflecting revisions to industrial supplies and materials and to foods, feeds, and beverages. Exports of services were also revised down.
  • Imports of goods were revised up, mainly non-auto capital goods as well as vehicles, engines, and parts. Imports of services were also revised up, mainly travel services.

Corporate profits

BEA’s featured measure of corporate profits declined 9.1 percent at a quarterly rate in the first quarter, after increasing 2.2 percent in the previous quarter, according to updated estimates. The decline was the largest since the fourth quarter of 2008.corporate profits

  • Profits of nonfinancial corporations fell 8.0 percent after rising 1.5 percent.
  • Profits of financial corporations fell 15.1 percent after rising 1.3 percent.
  • Profits from the rest of the world fell 5.8 percent after rising 5.5 percent.

Over the last 4 quarters, corporate profits fell 2.2 percent.