Posts Tagged 'Personal Consumption Expenditures'

Coming Soon: Real Personal Income Statistics for States and Metropolitan Areas

The Bureau of Economic Analysis will soon release real personal income statistics using regional price indexes to adjust BEA’s personal income data for differences in the cost of living across states and metro areas. These new statistics will inform decisions by businesses and households alike – from deciding where to move for a new job or locating a new company to helping economic development offices shape regional marketing plans and comparing economic performances across regions.

Across the U.S., there are differences in the cost of everything from medical care to housing. In some states, such as Hawaii and New York, goods and services cost more. In others, such as South Dakota and Mississippi, they cost less. Just as adjusting U.S. economic growth for inflation (real GDP) is critical for comparing the high inflation years of the early 1980s to the low inflation years of the late 1990s, adjusting state personal incomes (real state personal income) for differences in the cost of living across states is important in comparing incomes, and the purchasing power of that income across states.

BEA will provide comprehensive data on regional differences in real incomes, on April 24, when it releases statistics for 50 states and for 381 metro areas. The report will cover the period 2008 through 2012.

Economists call indexes that compare the level of prices of goods and services across geographic areas purchasing power parity indexes. BEA has worked with the Bureau of Labor Statistics, the Census Bureau, and other experts in price measurement to develop its new regional price parities. These regional price parities, which measure differences in the level of prices across states and metro areas, are used in combination with BEA’s national Personal Consumption Expenditures (PCE) price index, which measures the changes in prices over time, (or inflation), to compare personal incomes across regions and over time.

Last year, BEA released prototype statistics of this kind. This year, for the first time, BEA will start releasing annual reports on a regular basis.

BEA Readies 2014 Rollout of New Economic Statistics

BEA is releasing several new statistical products this year, part of an ongoing effort to better measure the dynamic U.S. economy and give businesses, policymakers and ordinary Americans additional tools to make informed decisions. Each report will be released at 8:30 a.m. eastern time on the date indicated.

REAL PERSONAL INCOME FOR STATE AND METROPOLITAN AREAS
• Annual report covers 2012 back to 2008
• Release date: April 24
• Report provides statistics on people’s incomes adjusted for inflation and broken out by state and metro area
• Adjusting regional personal income data for differences in the cost of consumer goods and services provides insight into the relative purchasing power of consumers in different states and metro areas
• BEA has previously released prototype statistics of this kind. This year, for the first time, BEA will start releasing annual reports on a regular basis

QUARTERLY GDP BY INDUSTRY
• Quarterly report covers the fourth quarter of 2013 back to the first quarter of 2005. Report also provides annual statistics for 2013
• Release date: April 25
• Statistics show how much how much economic activity is generated by different industries and how much individual industries contributed to overall U.S. economic growth
• For the first time, BEA is releasing GDP by industry statistics on a quarterly basis. Previously, these statistics were available only annually
• Quarterly statistics will provide a more timely snapshot of how individual industries are faring and can serve as a better barometer for potential turning points in the U.S. economy

PERSONAL CONSUMPTION EXPENDITURES BY STATE
• Annual report covers 2012 back to 1997
• Release date: Aug. 7
• Prototype statistic, meaning refinements in methodology may be made before this becomes a regular BEA product
• BEA, for the first time, will produce annual statistics on consumer spending broken out by state. Currently, BEA provides consumer spending figures only on the national level
• These statistics will offer for the first time a detailed look at consumer behavior in each of the country’s 50 states. Report will provide a gauge of how consumers in different states are faring, offering a richer picture of economic activity across entire United States

QUARTERLY GDP BY STATE
• Quarterly report covers the fourth quarter of 2013 back to the first quarter of 2007
• Release date: Aug. 20
• Prototype statistic, meaning refinements in methodology may be made before this becomes a regular BEA product
• BEA, for the first time, will produce quarterly statistics showing overall economic activity generated by each state as well as the main forces either supporting or restraining growth. Currently, BEA provides GDP-by-state statistics only at the national level
• These statistics will offer a more up-to-date picture of how states’ economies are faring and will provide a more detailed view of economic activity across the entire United States. The statistics will also serve as a better barometer for potential turning points for the overall U.S. economy